numbers in health

Anyone who has reviewed the health reform project will realize that the numbers are scarce. Many of the proposals derive from ideological concepts divorced from financial reality. Here I make a contribution based on the 2021 figures published by Visión Estratégica, Valora and El Colombiano in August 2022, about the 1000 largest companies in the country which account for 77% of GDP. All numbers have been converted to dollars at an exchange rate of 4200, so a trillion means a billion. To convert to billions of pesos, multiply by 5.

According to the minister, the sector manages about $20 billion, so it can be assumed that these numbers represent the majority of the system, and its analysis applies to hundreds of companies whose turnover is less than $47 million.

There are 114 large health companies with a turnover of $27 billion, 1/3 more than Ecopetrol. The benefit for the health sector is 670 million against 4,000 million for the oil company. Margin is 2.4% of the turnover and 19% of the capital. Data that matters to those who lament the ‘scandalous’ health business. Indicators of Ecopetrol, known to be ineffective, are 19% (8 times more) and 23%, respectively.

There are 55 service providers (hospitals and clinics) with bills of 5.5 billion, 21% of the sector, 463 million profit, and a margin of 8.5% on bills and 14% on investment.

Of these, 16 are state-owned companies with 1.5 trillion in turnover, generating profits of 127 million (8.4%) and equity of 1.2 trillion (10%).
The 38 private companies made $4 trillion in bills with profits of $335 million (8.6%) with assets of $2.1 trillion (15.6%).

This means that the private sector contributes 63% of the capital which is supposed to account for 74% of the billings with a profit rate similar to that of the public.

44% of the private sector is constituent, i.e. non-profit.

In the entire delivery system, 65% of the invested capital is non-profit and 60% of the profits are undistributed.

There are 29 companies that correspond to the health industry, mainly pharmaceutical laboratories. This bill is 5 billion or 19% of the sector. With 269 million in profit or 5% on billings and 13% on equity. A margin of 8% of general hospitals indicates that they should educate the pharmaceutical industry to improve business.

Figures show the mediators who are the Colombian health system. The difference between plans and reality. desires vs. resources. Turnover is $16 billion. In this group, earnings were negative at 64 million and equity was negative at 93 million. Earnings per share for the state bill 33%, losing 116 million and its capital is less than 361 million. Private companies, “another great business”, billed 6.6 billion, to lose 28 million and accumulate negative capital 100.

Although the insurance numbers don’t match the others, I hope that this brief analysis, many hours of work, will help bring the discussion to a higher level than the contribution of the purported Colombian hospital fakes.