Data Insights: LatAm hospital works after the pandemic

The COVID-19 pandemic, which started in 2020 and whose effects are still being felt, forced Latin American countries to improvise and find ways to update their deficient health infrastructure.

In the last two years, 20 large hospitals have started operations in the region, representing combined capex of US$5.64bn, according to the BNamericas project database. 

In that same period, construction began on 20 others, representing US$2.29bn in investments. 

Construction on 13 large hospitals worth US$1.73bn is expected to start this year, while 28 projects worth US$3.55bn will begin operations.

Chile

Even before the pandemic, Chile was in the process of drafting an extensive hospital PPP program, though most tenders were launched after the World Health Organization (WHO) classified the health emergency as a pandemic.

With this, in conjunction with other publicly funded projects, Chile has the most hospitals − 35 worth US$5.22bn − that will begin operations in the next decade.

Under construction are the US$120mn Buin-Paine and US$278mn La Serena PPPs, as well as the publicly-funded Sótero del Río facility (US$310mn) and the Ñuble provincial hospital (US$232mn). 

Meanwhile, construction is expected to start on five more projects involving investments of US$1.12bn by 2029.

Peru

Although the pandemic hit Peru exceptionally hard and the period was marked by political volatility, including the ouster of presidents Martín Vizcarra in 2020 and Pedro Castillo in 2022, the country ranks second in terms of large hospitals to be opened in the coming decade.

Overall, 18 facilities worth US$2.38bn will start operations.

President Dina Boluarte said last year that her administration has reactivated 57 health infrastructure projects, including large and small hospitals. Peru is also using the PPP model extensively.

Investment promotion agency ProInversión is expected to launch a tender for the US$224mn Central military hospital soon, while the US$353mn Antonio Lorena hospital in Cusco and the US$99mn San Ignacio de Casma facility, among others, are under construction. 

Construction on six more hospitals worth US$1.26bn should start by 2029.

Mexico

Eight large facilities involving combined investments of US$1.2bn will start operations over the next decade.

Of these, six will start this year. They include the US$244mn Agustín O'Horán and the US$172mn San Alejandro hospitals.

President Claudia Sheinbaum has also announced a new high-complexity hospital for Guadalupe (Zacatecas) that is expected to cost US$197mn, saying that it could be completed in three to six years. 

Construction on two more hospitals involving US$392mn is expected to begin this year. 

None of the other Latin American countries will start works on more than five large hospitals during the next five years, and none expects more than five to start operations in the coming decade.