Mexico Radiology Service Market Analysis

Mexico Radiology Service Market Executive Summary

The Mexico Radiology Service market is at around $60 Mn in 2023 and is projected to reach $159.1 Mn in 2030, exhibiting a CAGR of 14.95% during the forecast period.

Radiology, also known as diagnostic imaging, is a branch of medicine that uses imaging technology to diagnose, characterize, monitor, and treat diseases. Some of the most common imaging techniques include X-ray, MRI, ultrasound, CT scan and PET scan. Radiology is important as every sector within the healthcare field relies on radiology, including surgery, paediatrics, obstetrics, oncology, emergency medicine, to name a few. Radiology is a broader term composed of diagnostic radiology, interventional radiology, and therapeutic radiology which use radiant energy to diagnose and treat the diseases. Diagnostic radiology involves visualization of the various images of the body for evaluating symptoms, screening of illnesses, and diagnosis of diseases. Diagnostic radiology is usually non-invasive and performed without any incisions or surgical interventions. Interventional radiology is basically image-guided surgery and is used as a part of the medical treatment process. The various procedures under interventional radiology include angiography, angioplasty, embolization, gastrostomy, stent placement, catheter placement, and many more. It is often used to help treat cancer, lymphatic diseases, and vascular abnormalities. Therapeutic radiology is also referred to as radiation oncology or radiation therapy which involves treatment of cancer and other diseases using radiation.

Chronic diseases are a significant healthcare burden in Mexico, contributing to high morbidity and mortality rates and placing considerable pressure on the healthcare system. The Mexico Radiology Service Market is thus driven by significant factors such as the increasing burden of cancer, aging population, and emphasis on preventative care. However, high cost, radiation exposure concerns, and privacy and security challenges restrict the growth and potential of the market.

The major players of the Mexico Radiology Service Market are Hospital Guadalajara, Hospital Angeles, Hospital Americano, Hospiten International Hospital Group, and Médica Sur, among others.

Market Dynamics

Market Growth Drivers

Increasing Burden of Cancer: According to the WHO Global Cancer Observatory, the age standardized cancer incidence rate was 141.3 and 141.8 for males and females respectively for year 2022. As cancer prevalence rises, there is a corresponding increase in demand for the diagnostic imaging services such as CT scans, MRI scans, and PET scans as they are beneficial in cancer detection, staging, and treatment monitoring. Due to the crucial role of radiology services in every stage of disease, the Radiology Service Market is at its full potential growth.

Aging Population: In 2022, the individuals aged 65 and above in Mexico accounted for 10.61% of the total population. This geriatric population is more susceptible to chronic disorders, such as diabetes and cancer, especially the neurodegenerative disorders such as Alzheimer’s and Parkinson’s disease. Imaging techniques allow for early diagnosis of these disease, which in turn leads to improved disease prognosis. Overall, the aging population increases the demand for radiology services, which contributes to the growth of the Radiology Service Market.

Emphasis on Preventative Care: The increasing trend towards preventative care is experienced in Mexico. As healthcare sector emphasizes preventive health measures, there is a growing emphasis on early detection and screening for various diseases, including cancer, cardiovascular diseases, and other chronic illnesses. Radiology plays a vital role by offering imaging techniques such as mammography, ultrasound, and virtual colonoscopy for early detection and diagnosis. Therefore, the benefits of radiology in the medical sector are indispensable, which drives the overall market.

Market Restraints

High Cost: Radiology is expensive due to the high costs associated with equipment like MRI, CT, and PET scanners, each of which can run into millions of dollars. Furthermore, substantial financial investment is necessary for the upkeep and operation of these machines, including regular maintenance, software upgrades, and the employment of specialized technical personnel. These factors contribute to radiology services being among the costliest in the medical field, which in turn impacts the growth of the Radiology Service Market.

Radiation Exposure Concerns: Different diagnostic tests use different amounts of radiation which are generally considered to be safe. However, exposure to radiation is cumulative regardless of interval between tests. This means that many diagnostic tests that use low doses or several tests that use high doses, the patients may be exposed to a relatively large amount of radiation. The greater the cumulative dose, the greater are the risks for tissue damage and cancer in the future. These concerns, despite the numerous benefits of radiology, negatively affect the expansion of the Radiology Service Market.

Privacy and Security Challenges: Medical images are confidential because they hold crucial information for diagnosing and treating diseases. Therefore, ensuring the secure storage, processing, analysis, and transmission of these images is critical to avoid breaching ethical and legal standards related to health information privacy. However, the advancement of multimedia and communication technologies has made it easier to tamper with and misuse this information. Consequently, achieving high security for medical images remains a significant challenge in the technological era, which adversely impacts the market.

Regulatory Landscape and Reimbursement Scenario

In Mexico, the Federal Commission for Protection against Health Risks (COFEPRIS or Comisión Federal para la Protección contra Riesgos Sanitarios) is a regulatory body of the Mexican Government; a decentralized organ of the Mexican Secretariat of Health. Among the many health-related issues it regulates in Mexico are pharmaceuticals, food safety, medical devices, organ transplants, and environmental preservation. COFEPRIS is in charge of the entire drug approval process, from the initial application to the post-market surveillance (PMS) stage, including supply and demand, advertising, commercialization, imports and exports, distribution, manufacturing, and supply.

Mexico’s pharmaceutical industry is thriving and expanding, and thus strict laws are in place to guarantee the security and effectiveness of medications made available to Mexican residents. Pharmaceutical companies seeking to sell their medications in Mexico must understand the procedure thoroughly for getting approval. The overall approval includes an extensive evaluation by COFEPRIS, accompanied by facility inspection to ensure GMP compliance. There are three different pathways for registering medicinal product with COFEPRIS. The New Drug Registration is the pathway applicable for new chemical entities that have not previously marketed anywhere in the world. Next, is the Generic Drug Registration for drugs that are similar to the already-marketed reference drugs. Lasty, Biosimilar Registration is applicable to the biological products that are similar to the approved reference biological product.

The healthcare reimbursement system in Mexico is characterized by a complex interplay between public and private sectors. For the public sector, the social security institutions are the main provider of public health insurance. Workers in the formal sector and their dependents are covered by the Instituto Mexicano del Seguro Social (IMSS). Government employees and their families are covered by the Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado (ISSSTE). To supplement public plans with extra coverage, many Mexicans opt to buy private health insurance which provides access to a greater variety of healthcare providers, such as private hospitals and specialists. The healthcare reimbursement scheme in Mexico is gradually evolving. Although many people have a safety net in public services, there are still large differences. In the future, there may be initiatives to increase public-private partnership, achieve universal coverage, and use technology to improve healthcare affordability and accessibility for all.

Competitive Landscape

Key Players

Here are some of the major key players in the Mexico Radiology Service Market:

• Hospital Guadalajara
• Hospital Angeles
• Hospital Americano
• Hospiten International Hospital Group
• Hospital Velmar
• Punta Mita Hospital
• Centro Medico de Especialidades in Ciudad Juarez
• Centro Medico ABC
• Galenia Hospital
• Médica Sur Hospital