Peru - Medical Devices Peru - Medical Equipment
Overview
Peru is the eighth most populous country in the Americas, with a population of 32 million inhabitants and an average life expectancy of 73.7 years. According to the World Bank, Peru’s annual health expenditures remain at an estimated 5.5% of GDP. Despite this, the national government’s healthcare budget has risen 16% in 2018 to approximately USD 5 million, remaining among the highest-priority sectors. In May 2008, the government passed the Public-Private Partnerships (PPPs) legislative decree, which aims to facilitate the private investment promotion process through the creation, development, improvement, operation and maintenance of public infrastructure or the provision of public services. In recent years, the national social security agency, EsSalud, has inaugurated two PPP hospitals and will continue to bid new hospitals under this process. Also introduced in 2008, was the government enacted the Works for Taxes law (Obras por Impuestos). In accordance with this law, a private company may finance and implement public projects chosen by regional and local governments, and then deduct the investment amount from its income tax.
Peru’s healthcare sector has five main entities 1) The Ministry of Health (MINSA) is the main publicly-funded healthcare provider, serving 60% of the population through a network of public hospitals and clinics. MINSA offers Seguro Integral de Salad (SIS), the main publicly-funded insurance, 2) EsSalud, the national social security program, is funded by payroll taxes and provides services to 30% of all Peruvians. The remaining 10% of the population receives services from the 3) Armed Forces, 4) National Police, and 5) the private sector. The Government of Peru stated that improving the healthcare system is one of its top priorities. Medical services have improved as the nation developed rapidly over the past two decades; however, disparity in coverage remains between Lima and the rural Andean and Amazonian regions of the country. Increasing access to care, training more and qualified healthcare workers, and improving healthcare outcomes for the poor will result in improved human capital and benefit the country both socially and economically. Peru’s government is beginning to boost public spending to meet these challenges. Similarly, a growing private sector is developing new healthcare networks and raising the standards of technology and medical innovation.
In terms of product registration, a sanitary registry is required to sell medical equipment and devices. The Ministry of Health through the Dirección General de Medicamentos, Drogas e Insumos (DIGEMID) is the healthcare authority that regulates the importation of medical equipment and devices. For medical devices, it is mandatory to name a local distributor or representative since the registration will be issued to the Peruvian company. Both public and private hospitals purchase new medical equipment, although used medical equipment is only permitted for individual physicians buying it for personal use.
Market Entry
Since the United States - Peru Trade Promotion Agreement (PTPA) came into force in 2009, the majority of medical devices/equipment and pharmaceuticals enter Peru duty-free, provided a U.S. certificate of origin is presented to Peruvian customs. U.S. companies must register their products in Peru by partnering with a local distributor who has the ability to register through the Dirección General de Medicamentos, Drogas e Insumos (DIGEMID). Aside from obligatory registration, working with a local distributor is beneficial due to Peruvian preferences to buy locally from someone who can provide after-sales services. U.S. manufacturers should maintain close contact with end-users and provide training and demonstrations so that end-users can familiarize themselves with the equipment.
To succeed in the Peruvian market, U.S. firms should offer competitive pricing. Modern technology with strong post-sales technical and parts support is well received. All marketing materials and product information should be provided in Spanish.
In addition, U.S. firms are encouraged to take advantage of trade missions to Peru in order to promote new products. Attending trade events relevant to the industry is another proven method to test the local market or promote new U.S. products.
| 2016 | 2017 | 2018 | 2019 Estimated | |
| Total Local Production | N/A | N/A | N/A | N/A |
| Total Exports | 11.4 | 11.7 | 12.2 | 12.5 |
| Total Imports | 340.9 | 355.6 | 371.6 | 380.5 |
| Imports from the U.S. | 72.9 | 79.3 | 82.7 | 84.7 |
| Total Market Size | 329.5 | 343.9 | 359.4 | 368.0 |
| Exchange Rates | 3.38 | 3.26 | 3.29 | 3.40 |
Total Market Size = (Total Local Production + Imports) - Exports
Data Sources: Global Trade Atlas
Leading Sub-Sectors
The figures below represent each product’s share of Peru’s 2015 total imports in this sector.
Best prospects include diagnostic imaging equipment as the country invests in its radiology infrastructure. Other prospects include emergency room equipment and products, orthopedics, patient aids and dental products.
Opportunities
Peru has made significant progress in improving healthcare infrastructure, expanding access to care, and modernizing public institutions, laying the groundwork for the administration’s goal for universal coverage by 2021. However, demand for healthcare continues to exceed capacity. The public healthcare system remains in need of facilities and trained personnel to improve equality of health outcomes in rural and urban areas where disparate quality of access and care is pronounced. The Oxford Business Group reports that Peruvian public hospitals require at least 18,000 more doctors, including 15,000 specialists to meet patient needs. EY Peru further estimates demand for 5,000 additional hospital beds. Furthermore, a growing middle class is increasingly turning to the private sector for healthcare. Increased public investment in the healthcare sector has created an environment where U.S. companies can meet this demand by participating in PPPs. EsSalud’s planned construction of additional PPP hospitals provides a variety of opportunities to U.S. exporters.
About 2 million people, 6.5% of the total population in Peru are aged 65 or older. Demands for quality elder care and treatment for cancer, cardiovascular diseases, and diabetes exist. Additionally, the rising middle class in and around Lima has led to an increase in the urban population, creating higher expectations from healthcare providers. In stark contrast to the public system, the private healthcare sector has been particularly dynamic, having experienced significant growth in the past five years, buoyed by rising insurance penetration rates. Private investment in the sector has recently peaked, reaching $400 million and adding approximately 1,100 hospital beds. The program is expected to add 7,000 new hospital beds, and includes rehabilitation, construction, and outfitting of 206 primary care centers, construction of 170 provincial hospitals, construction of 23 regional hospitals and construction of 13 national hospitals.
The government's assertive stance towards prioritizing and enhancing the country's healthcare system, in conjunction with the interest of private companies to invest more in state of the art equipment such as computed tomography (CT) scanners, robotic radiosurgery systems, and gamma knives, will yield opportunities for foreign medical device manufacturers. These opportunities are augmented by the country's low export profile, where local manufacturing is limited to consumables, basic electro diagnostics, and hospital furniture.
Key Industry Events
Tecnosalud 2019 – International tradeshow of goods and services related to the healthcare sector.
September 4-6, 2019, Lima, Peru
Web Resources
Business Monitor International Research
Dirección General de Salud Ambiental (DIGESA)
Ministry of Health
National Institute of Statistics and Informatics— INEI (Spanish)
Obras por Impuestos
ProInversión