The five Andean states – Bolivia, Colombia, Ecuador, Peru and Venezuela – are generally investing more in health than other parts of Latin America. But relatively high rates of both communicable diseases and non-communicable conditions like heart disease and certain cancers are taxing an already strained healthcare workforce. Life expectancy trails the wider region.

Andean countries are missing out on opportunities to improve health outcomes and lower overall healthcare costs by making the latest treatments and cures more available to patients. They devote almost no pharmaceutical spending to new medicines, and regulatory delays, unnecessary border taxes and other bottlenecks make it harder for patients to get breakthrough drugs.

Powerful partnerships like Collaborating for Health in Colombia and Bolivia and PATH in Peru are demonstrating how Andean governments, private industry and foundations can improve health outcomes and expand access to innovative medicines when they work together.

KEY INDICATORS

Investing in Health

In the Andean area, government spending on health as a percentage of GDP was 3.9 percent in 2014, according to the Pan American Health Organization – higher than the regional average (3.7 percent).

Building the Health Care Workforce

Some countries in the Andean area beat the world average of 1.4 doctors per 1,000 population, including Colombia (1.8) and Ecuador (1.6). In others, the World Health Organization reports far fewer trained healthcare workers. Peru has just 1.1 doctors per 1,000 population and Bolivia has fewer than 0.5.

Contributing to Innovation

The Andean area is underperforming in attracting clinical trials. Colombia and Peru – both leading countries in the region – trail other major Latin American economies in both the number of clinical trials conducted to date and the number of clinical trials per million population.

Speeding Quality Treatments to Market

There is little data available on how quickly Andean area patent offices process applications. Peru appears to process patent applications efficiently, usually in less than three years. However, duplicative testing requirements and other procedural delays in Peru can delay market entry of new medicines.

Providing Access to Innovation

Andean countries devote very little of their pharmaceutical spending to new medicines, lagging behind both international and Latin American standards. In Colombia and Peru, for example, the percentage of spending devoted to innovative treatments is three percent or less. As a result, fewer breakthrough drugs are available to patients in the Andean area.

Eliminating Unnecessary Duties

High customs duties mean patients across the Andes pay extra for imported medicines and vaccines. Average tariffs range as high as 7.7 percent in Colombia, 6.5 percent in Bolivia and 6 percent in Peru.

Andean States

CURRENT SITUATION