Transforming Health Systems and Outcomes in Latin America

Suyash Gupta
Senior Manager, Global Health Policy, U.S. Chamber of Commerce

Published

December 03, 2024

The U.S. Chamber’s Global Initiative on Health and the Economy (GIHE) recently participated in the 2024 Government-20 (G20) Health Ministers Meeting in Rio de Janeiro in late October. This annual event convenes health ministers from the world’s 20 largest economies to drive international cooperation on critical global health issues like combating disease, building resilient health systems, and increasing worldwide access to essential health services.

The G20 has increasingly recognized the importance of health financing and reducing the socioeconomic burden of disease. As post-pandemic priorities shift for the global health community, the role of the G20 in shaping health financing has become ever more crucial.

In Rio, the Chamber—in partnership with the Latin American Federation of the Pharmaceutical Industry (FIFARMA) and with support from the B20—hosted an event on advancing healthcare financing, launching two new reports on value-based healthcare and the socioeconomic burden of diseases in Latin America.

The event featured a high-level dialogue between governments, multilateral institutions, and private sector leaders, including senior officials from the U.S. Department of Health and Human Services (HHS), the Oswaldo Cruz Foundation (Fiocruz), the Inter-American Development Bank (IDB), and the Brazilian and Argentinian Health Ministries.

a man and woman sitting at a table with microphones — Carlos Gadelha (right), Secretary of Science, Technology, Innovation, and Health Complex delivers keynote speech at GIHE's Health Financing in Latin America Event on the sidelines of the Rio 2024 G20 Health Ministers Meeting.

What Is Value-Based Healthcare?

Value-based healthcare (VBHC) has emerged as a transformative approach to health financing, focusing on maximizing patient outcomes relative to the costs of care. This model shifts the emphasis from volume to value, incentivizing healthcare providers and governments to deliver high-quality, efficient care.

The U.S. Chamber has been a vocal proponent of policies supporting VBHC’s implementation and scale-up. Through public-private partnerships and collaborative efforts, G20 countries can drive the global adoption of VBHC, ensuring that healthcare systems the world over are more responsive to patients’ needs and more efficient in their use of resources.

As Varnee Murugan, Executive Director of the Chamber’s GIHE, described, “VBHC highlights the private sector’s commitment and contributions to the efficient financing of health systems. Our newly launched report on value-based healthcare in Latin America is the result of our longtime collaboration with the G20 Global Innovation Hub for Improving Value in Health and our partnership with researchers at the University of Miami.” She emphasized, “Moving to systems focused on optimizing health outcomes while minimizing costs over the long term will benefit patients and people around the world.”

By aligning incentives with patient outcomes, VBHC encourages the adoption of best practices, reduces unnecessary procedures, and fosters innovation. Dr. Reem Bunyan, CEO of the G20 Global Innovation Hub, highlighted the importance of the Hub’s regional report on Latin America, stating “the insights and policy recommendations present concrete opportunities to advance value-based health and care across the G20. We look forward to continuing our work to foster opportunities for knowledge transfer and collaboration to accelerate the transition to high-value health systems at the national, regional, and global levels.”

a group of people posing for a photo — Varnee Murugan, Lambrini Kolios, and Suyash Gupta from the U.S. Chamber attend the G20 Health Ministers meeting in Rio de Janeiro in October.

The Socioeconomic Burden of Disease in Latin America

The high prevalence of chronic diseases and health challenges is a significant socioeconomic burden in Latin America. Non-communicable diseases (NCDs) such as diabetes, heart disease, and cancer are major contributors to mortality in the region, imposing substantial economic costs on individuals, families, and health systems.

By investing in health promotion and disease prevention, countries in Latin America can lessen the long-term economic impact of chronic diseases and improve human health. Of course, addressing the social determinants of health, like poverty, education, and healthcare access, always remains crucial for mitigating the socioeconomic burden of disease.

The Chamber’s GIHE event fostered a high-level discussion on health financing with stakeholders who can mobilize resources and support for initiatives advancing resilient and equitable health systems across Latin America. As a show of support, the study on value-based healthcare was disseminated to the ministers and delegates of the G20 Health Working Group.

Silvana Lay, Director of Access and Public Affairs of FIFARMA, concluded the event, saying, “It is important to understand that resources allocated to health are an investment, not an expense. Investment in health is an investment in life, yielding a significant and positive socio-economic impact driving prosperity in every society.”