Latin American home medical equipment market: Rise in aging population and their preference to home healthcare driving the Latin American home medical equipment marketPublished On: October 15, 2016
According to the latest publication from Meticulous Research®, the Latin American home medical equipment market is expected to reach $1,547.24 million by 2022 with a CAGR of 7.0% over the period of 2016 to 2022.
Latin American region is characterized by the increasing population and rising incidence of various diseases. The United Nations projects that the share of Latin America’s population that is aged 65 or over will triple by mid-century, from 6.3 percent in 2005 to 18.5 percent in 2050. Also, several Latin American countries, including Brazil, Chile, and Mexico, may have older populations than the United States in near future.
Decreasing fertility rates, coupled with increasing overall life expectancy, cited to success in combating infectious diseases fueled much of the increase in life expectancy over the last six decades in this region. As a result, demand for elderly care is expected to rise significantly. This geriatric population base is highly susceptible to various diseases such as diabetes, blood pressure, sleep apnea, arthritis, and cardiovascular. Therefore, the growing global geriatric population base coupled with the fact that approximately 70% of home health patients belong to the age group of 65 years and above, is expected to drive market demand for home medical equipment during the forecast period.
The increasing life expectancy are placing a huge burden on the health care system and managing the rising cost of delivering healthcare has became a major challenge across the Latin America. This has caused the significant rise in total health care spending in the region. According to the World Health Organization, Brazil has increased its total healthcare expenditure to 8.3% of GDP in 2014 from that of 6.5% of GDP in 1995, with this trend, it is believed that by 2030 the total expenditure will rise to 13% of GDP.
Many consumers and small employers are struggling to afford their health insurance premiums. Some employers are not able to offer health care coverage at all. The rate of health care cost continues to be well above the general rate of inflation. The pressure to reduce costs, increase efficiency, and demonstrate value will continue to intensify. This is expected to increase Latin American health care spending by an average of 3.1% during 2015-2019.
This rising expenditure on healthcare has shifted the focus towards alternative methods of treatment such as home healthcare which prove to be less expensive. Home healthcare can often deliver many of the services patients need for a fraction of the cost of a hospital or nursing home stay. Home healthcare could be a vital tool in stabilizing health care costs for patients across this region. The scope of home care is broad and covers a wide range of services, from assistance with daily living activities to providing the more complex care required by postsurgical or chronically ill patients. Even with the increasing acuity of care that is provided in the home setting, the cost per day of home care is significantly lower than that of a nursing home or an inpatient hospital stay and is increasingly more desirable by both patients and their families. It is believed that health care at home cost half as much as hospital care, even if the hospital stay averaged only five days and home health lasted 120 days. Thus, the caring for the chronically ill at home is economical. The health care at home can shorten hospital length of stay, lower readmissions, improve patient outcomes and cut health care costs. These advantages of home healthcare are pushing up the demand for the home medical equipment in Latin America region.
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