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Frost & Sullivan: Investments in Healthcare Improvements to Bolster the Integration of Picture Archiving and Communications Systems in Latin America

- Demand increases as small institutions recognize value of PACS' return-on-investment

BUENOS AIRES, Argentina, Nov. 27, 2012 /PRNewswire/ -- The Latin American picture archiving and communication system (PACS) market is expected to clock a compound annual growth rate of 29.6 percent till 2017. Although the PACS market in Latin America is far behind North America and Europe in terms of penetration, the rapid increase in image diagnosis equipment and the number of images per study will have a positive bearing on new PACS installations.

New analysis from Frost & Sullivan (http://www.healthcare.frost.com), Latin American PACS Market - Brazil, Argentina, and Mexico, finds that the market earned revenues of $81.1 million in 2011 and estimates this to reach an impressive $372.6 million in 2017. In 2011, 634 PACS units were sold in the Latin American market, and the number is expected to reach 2,383 by 2017.

"The technological sophistication of state-of-the-art diagnostic imaging equipment has resulted in an increase in data management requirements, encouraging PACS installations," said Frost & Sullivan Industry Analyst Federico Baguear. "The introduction of public health plans has further conducted to more diagnostic examinations, boosting the need for PACS in Latin America."

Brazil drives the pack in the region, with the government investing huge resources in healthcare improvements. In Argentina, the lack of imported radiological films has led the government to mandate PACS while the Mexican government has invested more than $3 billion in healthcare programs.

In addition, healthcare institutions themselves are installing PACS. They recognize the significant return-on-investment generated through reduced film consumption, improved quality of diagnosis, and greater flexibility in decision-making.

The purchase of higher value-added PACS products is made easier, as health providers are increasingly consolidating and forming big groups of hospitals or diagnosis centers, and laboratories. This heightens demand, helping them negotiate better rates.

However, several factors curb the implementation of PACS in the region. To integrate the databases of various hospitals, robust IT software is essential. Healthcare institutions looking to install PACS also require an IT department with a monthly budget, apart from initial installation investments. The lack of specialized IT engineers further raises personnel costs.

Therefore, there is a high level of resistance to acquire IT software, reflected in the low budgets both public and private clinics and hospitals designate for these solutions.

"To meet the need of the low-budget market segment that do not have PACS solutions yet, multinational companies are developing and implementing more accessible business models," noted Baguear. "Rental, pay-per-use, and cloud-based pay-per-use models are cost-effective, thus facilitating adoption.''

This will enable PACS installations in Latin America to reach North American and European standards in the next 15 years.

If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Latin American PACS Market - Brazil, Argentina, and Mexico is part of the Connected Health Growth Partnership Services program, which also includes research in the following markets: Analysis of the Cardiac Rhythm Device Market in Mexico, Biologics Market in Brazil, Healthcare Landscape, Outlook and Growth Opportunities in Brazil. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Latin American PACS Market—Brazil, Argentina, and Mexico
NB06-48

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com

http://www.frost.com

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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