Read the Conversation
EF: Please give us a brief annual review and let us know your top priorities and opportunity prospects for 2024.
GH: In 2023, government expenditure and the consolidation of healthcare providers with expansion plans were the two primary drivers of market growth. The surge of public spending began in 2022 and has been something unseen in the past five to six years. Governmental organizations started to invest significant amounts of resources in particular technologies. For example, at GE HealthCare, we secured an unprecedented order for 19 units of oncological diagnostic and treatment equipment last year when we were granted the project.
Meanwhile, the industry's heads of outpatient clinics and private hospital groups, many of whom are very aggressive expansionists, were also responsible for the market's success, which we expect to continue in 2024.
EF: What is your main strategy for capturing market share now that Mexico’s health cluster is expanding?
GH: At GE HealthCare, our approach revolves around the patient. We offer a wide range of products and technology, as not all organizations or private groups have the same needs. Our technology can be deployed in locations without sufficient energy supply or in other complex settings. Even in remote areas, our technologies remain feasible and can be used to diagnose patients.
For example, the CT scan technology within GE HealthCare's portfolio is characterized by the detector's coverage, which ranges from 16 to 512 slices. This merely illustrates how we may adapt our technology to patients' needs and tailor solutions to the specific institution's requirements. We can adjust to the infrastructural capabilities of hospitals and clinics. This adaptability extends across all our modalities, ensuring comprehensive customization.
EF: How is GE HealthCare preparing to integrate more digital tools and AI technology into the pipeline?
GH: We aim to be a leader in technology and AI solutions. GE HealthCare currently invests $1 billion annually in research and development, with plans to increase this investment in the future. At the recently held annual American Radiological Society Conference (RSNA), we showcased one of our largest product displays to date. The exhibit included 40 new products from GE HealthCare, many of which have in-built AI technologies.
Our AI solution for MRI can reduce the examination time for an MRI scan by up to 40 to 50%, depending on the protocol. This impressive time savings benefits both patient comfort and operational efficiency.
During the AI revolution, many new solutions, including other technology providers, are emerging rapidly. The challenge lies in effectively integrating these solutions into the patient's journey to impact their diagnosis and treatment significantly. This is just the beginning of something really big. We are seeing a lot of third-party development, which is both fascinating and challenging because we want to provide hardware as well as software.
EF: Are you taking steps to train healthcare providers on how to deal with the emergence of artificial intelligence (AI) and other technological advancements?
GH: In Mexico, we make significant investments in the training of medical professionals. Every piece of equipment we sell has extensive training for the medical applications that will use it. In addition, we host numerous national and international events throughout the year where we give directions and advice on how to use our technology more effectively.
We conduct an international ultrasound training event called LASUS, which is the most prestigious ultrasound training event of the year for all of Latin America. Over several years, LASUS has brought together doctors across the region, offering high-end and cutting-edge technology ultrasonic scanning locations and training.
EF: How could Mexico's regulatory structures improve to further foster innovation in the sector?
GH: We collaborate with authorities via AMID and other associations to support our Mexican colleagues in understanding the accelerated cycles of innovation, technology, and the adoption of new products and services, such as artificial intelligence (AI). Laws across all nations must adapt to this transformative landscape. The integration of AI and big data has significantly reduced the timelines for meeting patient demands and the investment levels of various healthcare organizations.
Regulators worldwide, not just in Mexico, are challenged to keep pace with rapid advancements. Their challenge lies in finding the right balance between speed and ensuring the safety of devices, technology, and medicines available. This issue is not unique to Mexico, but Mexican regulators are aware and actively seeking improved solutions. It is more about the technology-driven era in which the healthcare sector operates.
EF: What makes GE HealthCare a great workplace, and how do you find and develop talent specifically for Mexico?
GH: We still carry the GE DNA, and because GE is an amazing place for leadership development, we are particularly effective at developing and retaining people. I started at GE as an intern and went through several well-known leadership programs.
Our way of guiding our team members through their careers is unique, in my view, and specific to GE. We operate in the passionate field of healthcare. These two factors are essential for us to retain and grow our talent. As a 33-year-old General Manager, I am a living example of this. This company genuinely prioritizes its employees' growth.
EF: How is Mexico shifting the focus from treating illnesses to promoting prevention and well-being? In what ways will GE HealthCare contribute to this progress in the country?
GH: Mexico has made significantly improved access, especially in the preventative field. This access was mostly propelled by outpatient clinics present throughout Mexico. The number of outpatient clinics offering reasonably priced lab tests, mammography, X-rays, MRIs, CT scans, and other technologies that aid in the early identification of many diseases has increased rapidly in recent years. Government spending is no longer focused solely on Mexico City. It is now more common to see government investments in other areas. This shift helps improve access to technology and early diagnosis.
Costly machines like MR scanners, which require certain capabilities because of their infrastructure, used to be available in cities with populations of over one million people. This has changed with outpatient clinics exponentially expanding practically all of Mexico's major cities. These technologies, which are essential for the early diagnosis of various pathologies, are now frequently found in towns with a population of 300,000 to 2,500,000.
Along with the expansion of outpatient clinics, many private and public institutions are promoting large advertisements and campaigns to contribute to the development of a preventative culture, which was lacking in Mexico.
The industry has significantly lowered the cost of receiving an early diagnosis or examination. At GE, we collaborate with a variety of healthcare providers to find ways to reduce costs while increasing access. Depending on how many hours you wish to open your clinic, there is a limit to how many MRI exams can be performed daily. Increasing the number of exams enables a lot of access and cost reduction.
EF: What healthcare agenda would you propose if you were running for president?
GH: Increased and improved collaboration between public and private organizations. The public sector provides care for a sizable portion of the population in Mexico. There is a strong private sector with the capacity to take on more patients. That would greatly contribute to Mexico's success in the healthcare sector.
EF: What message would you like to send to your staff in acknowledgment of all the accomplishments as a new independent company?
GH: I want to congratulate the team on a fantastic year. There has been a lot of pressure to achieve growth, and we have overcome many difficulties.
For the second consecutive year, we were listed among the top five technology suppliers to Mexican public institutions. We take great pride in providing improved technology and diagnoses to the Mexican people. I am proud of what we have accomplished.
