El Salvador-Medical Equipment El Salvador-Medical Equipment
Overview
| 2016 | 2017 | 2018 | 2019 estimated | |
| Total Local Production | 0.0 | 0.0 | 0.0 | 0.0 |
| Total Exports | 3.3 | 3.2 | 3.0 | 3.0 |
| Total Imports | 67.8 | 62.9 | 57.4 | 57.9 |
| Imports from the US | 25.9 | 18.4 | 19.7 | 19.8 |
| Total Market Size | 64.5 | 59.7 | 54.4 | 54.9 |
(total market size = (total local production + imports) - exports)
Units: USD millions
Source: Central Reserve Bank of El Salvador
Statistics based in the HTCs: 3005.90; 3006.10; 3006.20; 3006.3010; 3006.3020; 3006.50; 3006.70; 4014.10; 4014.90; 4015.11; 4015.90; 4818.901; 9011.10; 9012.10; 9012.90; 9013.20; 9013.80; 9013.90; 9018.11; 9018.12; 9018.13; 9018.19; 9018.20; 9018.3110; 9018.3190; 9018.32; 9018.3910; 9018.3990; 9018.50; 9018.90; 9019.20; 9022.12; 9022.14; 9022.21; 9022.30; 9022.90; 9402.9010; 9402.9020; 9402.9090; 9025.11
June 1, 2019, President Nayib Bukele was sworn into office taking over from the previous left leaning party in power since 2009. President Bukele named Ana Orellana Bendek as the new Minister of Health. Her priorities will be to seek solutions to El Salvador main health problems: the shortage of medicines (which is estimated in 40% in the public sector), lack of maintenance and bad conditions of the hospitals infrastructure and improve health services for the population.
The Salvadoran health sector is composed of the public sector, which includes the Ministry of Public Health and Social Assistance (MSPAS), the Salvadoran Social Security Institute (ISSS), the Salvadoran Integral Rehabilitation Institute (ISRI), Salvadoran Institute of Teachers Welfare (ISBM), the Military Health Service (IPSFA), and the Solidarity Fund for Health (FOSALUD). The private health sector is made up of hospitals, clinics, and non-profit organizations. The Ministry of Health has a total of 30 hospitals, and 372 health units; and the ISSS has 11 hospitals, and 71 health units and community units. There is only one military hospital. The private system is composed of approximately 30 hospitals, and over 116 private clinics concentrated in the country’s three main cities: San Salvador, Santa Ana, and San Miguel.
According to the Ministry of Health’s 2018-2019 Annual Report, the 2019 health budget totals $704.64 million USD, from which $657.83 million are from government funds, $9.40 million from foreign loans, $16.96 from donations, $16.55 from Ministry own funds, and $3.91 from special activities.
In 2017, the Multipurpose Household Survey Report done by the General Directorate of Statistics and Census (DYGESTIC) in El Salvador, reported that 24% of the total population had medical insurance in El Salvador, broken out as follows: 91.5% ISSS, 6.3% ISBM, 1.7% IPSFA, and 0.4% private or other.
The public sector is the key primary purchaser of medical equipment and supplies through the Ministry of Health and the Salvadoran Social Security Institute (ISSS). Public institutions differ from private entities as they only buy new equipment. Some private hospitals occasionally acquire used or refurbished equipment. Approximately 70% of El Salvador’s market is new medical equipment and 30% used or refurbished.
New and used medical equipment can be imported into El Salvador and need to be registered at the DNM; however, used or refurbished equipment cannot be older than 10 years from the date of manufacture. In addition, U.S. exporters should be advised that the Good Manufacturer Certificate (GMC) is required when exporting new, used or refurbished equipment to El Salvador.
To enter the market a U.S. exporter needs to identify a local distributor or representative in the country. Selling to public institutions typically requires participation in a public bidding process announced through the government procurement website: www.comprasal.gob.sv. It is recommended that the U.S. companies work closely with their local partner to develop effective promotional strategies and maintain a continuous presence in the market. Also, it is recommended to have a legal representative (law firm) who can assist in preparing a bid offer. According to the Salvadoran Government Procurement Law (LACAP), the lower bid is usually granted.
Medical devices, pharmaceuticals, and dental products are regulated under the Medicine Law that entered into force on April 2012. Products need to be registered at the National Medicine Directorate (DNM). The registration requirements are available at the DNM website: www.medicamentos.gob.sv. In addition, ionizing radiation devices or equipment require an import permit from the Radiation Protection Directorate at the Ministry of Health.
Leading Sub-Sectors
- Respiratory equipment
- Ultrasound scanning apparatus
- Magnetic Resonance Imaging equipment
- X-ray equipment
- Computerized Axial Tomography scanners (CT apparatus)
- Cardiac monitors
- Beds, lamps
- Dialysis equipment
Opportunities
In 2018, El Salvador imported a total of $57 million in medical equipment and devices, with U.S. products making up roughly 34% of the market share. US products are preferred due to quality, customer awareness, and availability of spare parts and accessories. The main competitors in this sector are products from China, Germany, and Mexico. There is no significant local production in El Salvador.The Ministry of Health will conduct separate international biddings for the design and construction of hospitals and for the purchase of equipment. The company who designs the project will recommend to MINSAL the equipment needed in each hospital. Bids will be published at El Salvador Government procurement website COMPRASAL (www.compral.gob.sv) and the Development Business (www.devbusiness.com).
Following are mid-term projects under development by the public and private sector:
- Public Sector – projects funded by a $170 million loan from the Inter-American Development Bank; international bids are expected to be announced in 2019.
- North Zone Hospital: bids are expected to be announced in October 2019 for a new hospital in the northern part of San Salvador, which will provide services to the municipalities of Apopa, Nejapa, Aguilares, Tonacatepeque, Guazapa, and El Paisnal. The hospital will have approximately 100 beds and will provide surgery, pediatric, and gynecologic services. $5 million will be allocated for the purchase of medical equipment.
- Hospital Rosales: bids for the main public hospital in El Salvador are expected November or December 2019. The project contemplates the remodeling of current facilities and the construction of new towers. $19 million will be allocated for the purchase of medical equipment.
Private Sector
- Hospital de San Miguel: new hospital in the third largest city in the country, San Miguel. Hospital will include three operating rooms, two intensive care units, and newborn nursery services. Would represent an investment of approximately $4 million. Hospital is expected to be in operation by 2020.
- Hospital de Diagnostico: one of the main private hospitals in the country, is planning the construction of a new hospital in the city of Nuevo Cuscatlán. The new facility will have 50 beds with the capacity to increase to 100 and will be fully equipped to provide all health services. Project is still under process of obtaining permits, which may take a few years.
- Diagnostico is also opening a walk in emergency clinic/urgent care center on Orden de Malta in the Santa Elena neighborhood of Antiguo Cuzcatlan.
Web Resources
- Ministry of Health: www.salud.gob.sv
- Salvadoran Social Security Institute (ISSS): www.isss.gob.sv
- National Medicine Directorate (DNM): www.medicamentos.gob.sv
- Official Salvadoran Government Procurement website: www.comprasal.gob.sv
- General Directorate of Statistics and Census (DYGESTIC): http://www.digestyc.gob.sv
U.S Commercial Service Contact Information
Lidia Sosa, Commercial Specialist, Lidia.sosa@trade.govPrepared by the International Trade Administration. With its network of more than 100 offices across the United States and in more than 75 markets, the International Trade Administration of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.