Consolidation in health can be opportunity for manufacturers

In the midst of a slow resumption, the prospects of a second cycle of acquisitions in health services must yield opportunities for the equipment industry, which in recent years sensed a cooling. To take advantage of the wave, the manufacturers should take into consideration the difficulty of financing and the need for cost reduction in the additional area. In the opinion of the President of the Federation of hospitals, clinics and laboratories in the State of São Paulo (Fehoesp), Ali Yussif Mere Jr., there are still a large number of indebted companies and in financial trouble. However, the bias and the entry of foreign capital in the sector sparked an interest in modernization, expansion and purchase of equipment between service providers that can attract investors. "This perspective of attracting foreign capital animates to invest", says the Executive. According to the managing partner healthcare leader at Deloitte Brazil, Enrico Vettori, the main assets of staged health centers in a first wave of acquisitions, now this movement should be observed between the regional companies. This not only between hospitals, much sought after by investors over the past two years, as well as the so-called peripheral activities. These include Oncology, ophthalmology, medical services in General, diagnostic imaging, among others. "It is possible to imagine that in this plan between maintenance, modernization, standardization of technology in General, ranging from management, ERP software and machinery and equipment," he says. The CEO and President of GE Healthcare for Latin America, Luiz Verzegnassi, believes that the opportunities go beyond the acquisition of equipment. "When there is consolidation, you have to create synergies, whether through new technologies or new work processes. And we have other offers as the consulting arm in health and education ", details. The challenge, according to him, is to help investors to identify these opportunities. "We can, for example, modernizing a MRI machine, because we have a product that does renovation. Many times he wants this option, for example. It's up to us to identify this kind of opportunity, "he says. According to him, show the alternatives allows an extension of the relationship also. Asked about the regions with the greatest potential for the company, it highlights that has projects throughout the country, but inside the activity has been shown to be of strong way. "That's where there's an important opportunity of access to health care". "When you look at Brazil, the number of equipment per inhabitant is lower, mainly outside the big cities. Sometimes a person needs to travel 8 hours. There is a pent-up demand for equipment. Manufacturers talk a lot about it, "adds the commercial bank Superintendent DLL for the health and technology business units for offices, Mariana Marchesano. According to her, the internalization of manufacturers is one of the main factors that has driven the search for financing in the last three years, added to the fall in interest rates of the last three years compared to the previous three. "In 2016 has increased by three times the volume funded in 2017, two-and-a-half times and casting to 2018 is high of 50% of the amount," he says. Currently, the Bank works in partnership with the manufacturers GE, Philips and Siemens and between their foci are the financing of large equipment for clinics. The challenge at the time of extending credit to companies of health, according to her, is the formalization of the companies. "Many times the accounting areas of small and medium-sized enterprises do not have the detail necessary for funding," he says. A difficulty that the President of Baumer and ComSaúde holder, Director Ruy Baumer, noted is the increase of the restriction of the BNDES, which has always been a major funder of the sector. "The credit today is still a problem for the industry," he says, noting that occurs both in the industry and customers. Alternatively, in the Hill-Rom, regional director, Bernard James, comments that the economic downturn had to resort to American force and begin offering other financing solutions. During this period, other forms of acquisition of equipment also gained relevance in the company. Lending, leasing and other models today are 20% of contracts, before 100% were shopping. Another company's strategy to reach 28% growth in 2017 was betting on a more strategic role. "You must measure the results and be able to share the risks," he says. According to him, the company is the result of equipment sold, if there has been promised, the Hill-rom establishes an action plan or offers a discount. At Baumer, Ruy points out that among the strategies are export, internationalisation, innovation and increased efficiency. "We are also investing in improvements, expansion and launches, but only on demand feasible. What you have just demand in future let's wait, "he explains. For him, today's replacement demand superior to new markets. "The concern now is the hiccup that gave economy". says. To the Executive Chairman of the Brazilian Association of high-tech Industry of health products (Abimed), Charles George, even though GDP projections have been reviewed, if the economy growing 2%, it is possible that manufacturers able to expand at 4% . "On average, because the sector has many products and you can find better or worse performance". According to him, in 2017 the demand started to react and now in 2018 tends to consolidate. Even large equipment, that end up being more affected during an economic recession, are gradually coming back to have a reheating.