In this article, we will be taking a look at the 15 healthiest countries in Latin America. You can also visit our article on 10 Best Health Insurance Stocks to Buy.
Global Healthcare Market Overview: Growth, Challenges, and Regional Insights
The global healthcare market is a vast and rapidly growing sector. In 2023, the healthcare services market was valued at approximately $7.975 trillion, up from $7.5 trillion in 2022, with a compound annual growth rate (CAGR) of 6.3% expected to continue through 2027, reaching $9.8 trillion. The global healthcare market is segmented into various categories, including hospitals, digital health, and healthcare services. The hospital market alone is projected to grow by 4.18% annually from 2024 to 2029, reaching a market volume of $5.19 trillion by 2029.
The World Health Organization (WHO) estimates that at least half of the people on Earth do not have access to basic medical care. The healthcare sector in the United States is among the biggest and most intricate in the world, contributing around 20% of the nation’s gross domestic product. Patient care accounted for 65% of the US health industry’s revenue in 2021. The COVID-19 pandemic, however, resulted in a sharp decline in income, with the US healthcare system’s revenue falling by about 50% in 2020.
Access to healthcare is restricted, which presents serious problems in several countries. In Brazil, for example, 75% of the population is covered by universal healthcare, while the remaining 25% use a private system that is mostly supported by employers. With medical inflation in the private sector at a high 17.3%, cost-effective cost-management strategies are required. Comparably, China is building up its healthcare system, planning to quadruple healthcare spending from 5% to 10% of GDP and add 20,000 hospitals within the next ten years.
The expense of healthcare has been rapidly rising in the US. Everything increased in price by almost 81% between June 2023 and 2000, while healthcare expenditures increased by 114%. The COVID-19 epidemic has exacerbated the situation. COVID is becoming more and more like the flu, but treating and preventing it still comes with a high price tag. According to estimates from McKinsey, the US will pay an additional $200 billion annually on healthcare linked to COVID-19.
Surging Global Health Spending and Key Players in the U.S. Healthcare Market
Global health spending surged to approximately $9 trillion, or 11% of GDP, as a result of the epidemic, as governments stepped up fiscal measures to bolster social protection and fend off economic downturns. Between 2019 and 2020, the percentage of Americans using virtual care increased significantly from 11% to 46%, with 60% of patients preferring virtual follow-up visits. Telemedicine was provided by 90% of US healthcare providers by 2020, up from 14% in 2016. According to Accenture, the healthcare system might save up to $250 billion a year because of this change.
Certain healthcare companies like Pfizer Inc. (NYSE:PFE), Johnson & Johnson, Penumbra, Inc. (NYSE:PEN), and Eli Lilly and Company stand out in the US healthcare market. For example, Pfizer is particularly recognized for its role in developing the Pfizer-BioNTech COVID-19 vaccine, which generated $11 billion in revenue in 2023. The company’s other major products include apixaban, a blood thinner, and a pneumococcal conjugate vaccine, each contributing $6 billion in revenue in 2023. Additionally, Pfizer Inc. (NYSE:PFE)’s oncology drug palbociclib and the rare disease treatment tafamidis generated $4 billion and $3 billion, respectively. Pfizer reported revenues of $13.3 billion for Q2 2024, marking a 3% year-over-year operational growth. The company posted adjusted earnings per share of 60 cents, surpassing expectations of 46 cents per share. Net income for the quarter was $41 million, or 1 cent per share, compared to $2.33 billion, or 41 cents per share, a year ago. Excluding COVID-19 products, Pfizer Inc. (NYSE:PFE)’s revenue increased by 14% operationally. This growth was driven by strong sales from acquired drugs, key in-line brands, and recent commercial launches, particularly in the Oncology segment, which benefited from the acquisition of Seagen.
Similarly, Penumbra, Inc. (NYSE:PEN) is also one of the biggest healthcare companies in the USA. Recently, Penumbra introduced Lightning Flash 2.0, a next-generation software designed for the rapid removal of venous thrombus and the treatment of pulmonary embolism (PE). Additionally, Penumbra has enrolled the first patient in the STORM-PE randomized controlled trial, which evaluates the Lightning Flash technology for the treatment of acute pulmonary embolism. Penumbra, Inc. (NYSE:PEN) achieved a revenue of $299.4 million in Q2 2024, marking a 14.5% increase compared to the same period in 2023. In constant currency terms, this growth was 14.7%. The company reported a loss from operations of $81.0 million in Q2, which included $110.3 million of non-cash impairment and inventory write-down charges related to its Immersive Healthcare assets. However, on a non-GAAP basis, income from operations was $31.7 million.
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A healthcare professional wearing a lab coat, holding a vial of medication.
Our Methodology
For our list, we looked at two indexes: the GHS index of 2021 and the health pillar of Legatum Prosperity index of 2023. The 2021 Global Health Security (GHS) Index assesses 195 countries’ preparedness for epidemics and pandemics across six categories. The global average score is 38.9, indicating weak international readiness despite COVID-19 efforts. Similarly, The Health pillar of the 2023 Legatum Prosperity Index assesses health outcomes, systems, risk factors, and mortality rates, highlighting the importance of physical and mental health and access to effective healthcare services for individual and national prosperity. Hence, we averaged the scores of GHS, and the health pillar’s from Legatum index and the final rankings in our list were adjusted according to the average we obtained of these scores.
The data we’ve discussed on obesity and malnutrition comes from Global Nutrition Report.
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Here is our list of the 15 healthiest countries in Latin America.
15. Ecuador
Insider Monkey Score: 13.5
Ecuador tops the list for being the healthiest country in Latin America. The country is on course to meet some global nutrition targets, such as reducing childhood wasting, but struggles with others like reducing anemia among women and low birth weight in infants. The prevalence of obesity is lower than the regional average, with 27.3% of adult women and 17.1% of adult men affected, compared to the Latin American average of 30.7% for women and 22.8% for men.
14. Paraguay
Insider Monkey Score: 13
Paraguay ranks low in the region for healthcare investment, failing to meet the recommended 6% of GDP. Approximately 70% of the population lacks health insurance, relying on the public health system for medical needs The prevalence of obesity is 26.3% among women and 19.7% among men, which is below the regional average but still significant which makes Paraguay stand among the healthiest countries in Latin America.
13. Mexico
Insider Monkey Score: 11.5
Mexico’s healthcare system is a mix of public and private services. The cost of healthcare in Mexico is significantly lower than in the United States, making it a popular destination for medical tourists. For example, visiting a neurosurgeon in Mexico costs approximately USD 40, while a general practitioner visit ranges from USD 15-25. Dental procedures like teeth cleanings cost around USD 50 in modern facilities. Medical procedures in Mexico can save patients between 36% to 89% compared to costs in the United States.
12. Nicaragua
Insider Monkey Score: 11
Nicaragua is recognized as one of the healthier countries in Latin America, largely due to its low-stress lifestyle and access to fresh, healthy food. The country has also made progress in maternal, infant, and young child nutrition. However, challenges remain, such as high rates of anemia among women of reproductive age (15.7%) and childhood stunting (17.3%), both of which are above the regional averages. Nicaragua’s healthcare expenditures are relatively low compared to other countries in the region. The cost of living, including healthcare, is affordable, with a couple able to live on $1,200 to $1,500 per month.
11. Peru
Insider Monkey Score: 10.5
Peru, one of the healthiest countries in the world, is making progress in reducing stunting and wasting among children under five, with 11.4% affected by stunting and only 0.4% by wasting, which is among the lowest rates globally. However, challenges remain, such as a 20.6% prevalence of anemia among women of reproductive age and a 9.4% rate of low birth weight in infants. In terms of diet-related non-communicable diseases, Peru’s obesity prevalence is lower than the regional average, affecting 26.7% of adult women and 17.3% of adult men. Diabetes affects 8.7% of adult women and 7.9% of adult men.
10. Brazil
Insider Monkey Score: 10
Brazil’s public healthcare system, known as the Sistema Único de Saúde (SUS), is one of the largest public health systems in the world. It provides free healthcare services to all Brazilian citizens and residents, which includes preventive, emergency, and specialized care. Brazil has a substantial number of hospitals, with 6,642 hospitals as of 2023, which is more than in the United States.
9. Jamaica
Insider Monkey Score: 9
Jamaica’s health market is characterized by a mix of public and private healthcare services. Jamaica is on course to meet several global nutrition targets, such as reducing childhood stunting and wasting and increasing exclusive breastfeeding rates. However, issues like high obesity rates and diabetes prevalence among adults persist. Approximately 36.9% of adult women and 18.1% of adult men are living with obesity, which is higher than the regional average for women but lower for men. Diabetes affects 17.2% of adult women and 11.0% of adult men.
8. Colombia
Insider Monkey Score: 8.5
Colombia is recognized as one of the healthiest countries in Latin America. Approximately 20% of Colombia’s government spending is directed towards healthcare and around 5% of Colombia’s GDP is related to healthcare. Although Colombia is a healthy country, malnutrition affects a significant portion of the population, with 21% of children under five suffering from moderate to severe malnutrition and 23% experiencing iron deficiency anemia.
7. Trinidad and Tobago
Insider Monkey Score: 8
Trinidad and Tobago stands out as one of the healthiest countries in Latin America. The country is ‘off course’ to meet several global nutrition targets, including maternal, infant, and young child nutrition (MIYCN). For instance, 17.7% of women aged 15 to 49 years are affected by anemia, and 12.4% of infants have a low birth weight. Despite these challenges, the prevalence of stunting in children under five years is lower than the regional average, standing at 9.2% compared to 11.3% in Latin America and the Caribbean. The country hosts several major hospitals, including the Port of Spain General Hospital, San Fernando General Hospital, and Eric Williams Medical Sciences Complex.
6. Panama
Insider Monkey Score: 6
Panama stands tenth among the healthiest countries in Latin America. The prevalence of obesity and diabetes in adults is a concern, with 30.6% of women and 20.4% of men living with obesity, and diabetes affecting 11.0% of women and 10.1% of men. The public healthcare system is managed by the Ministry of Health and the Social Security Fund, which provide services to the majority of the population.
5. Argentina
Insider Monkey Score: 5.5
Argentina has made notable progress towards achieving Universal Health Coverage (UHC), with an essential coverage index of around 76-77% for healthcare services. Despite this progress, financial protection remains a challenge, as out-of-pocket health expenditures are still significant, accounting for less than 25% of household expenditures. In 2021, Argentina allocated 10% of its GDP to health spending, ranking it among the highest in Latin America and the Caribbean.
4. Cuba
Insider Monkey Score: 5
Cuba’s healthcare system is characterized by its universal coverage and a strong emphasis on preventive care. The country spends about $1 billion annually to subsidize food rations, which are part of its broader strategy to ensure the nutritional health of its population. Cuba also has one of the lowest infant mortality rates in Latin America, but obesity is a concern with 33.1% of adult women and 21.8% of adult men in Cuba living with obesity.
3. Uruguay
Insider Monkey Score: 3.5
Uruguay has been proactive in addressing various health challenges, particularly in nutrition and non-communicable diseases (NCDs). The country has made strides in maternal and child health, with a notable breastfeeding rate of 57.7% for infants aged 0 to 5 months. Additionally, Uruguay’s life expectancy is relatively high, with men living up to 74 years and women up to 81 years. However, challenges remain, such as a high prevalence of obesity and diabetes among adults, with 33.3% of women and 27.7% of men being obese, which is above the regional average.
2. Chile
Insider Monkey Score: 3.5
Chile’s health market is characterized by a mix of public and private healthcare services. The public system, known as FONASA, provides coverage to about 75% of the population, while the private system, ISAPRE, covers the remaining 25%. The country has a high life expectancy of around 80 years and low infant mortality rates comparable to those in developed countries. however, Chile faces challenges such as a high prevalence of obesity, affecting 34% of the population, and a significant rate of tobacco use, which is the highest in Latin America.
1. Costa Rica
Insider Monkey Score: 1.5
Costa Rica stands among the healthiest countries in Latin America. The country is home to one of the five original Blue Zones, the Nicoya Peninsula, known for its high number of centenarians in excellent health. In 2021, Costa Rica spent 8% of its GDP on health, up from 7% in 2019, maintaining a stable range of 7% to 8%.
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Disclosure. None: The 15 Healthiest Countries in Latin America is originally published on Insider Monkey.
