Read the Conversation
EF: The World Economic Forum recently took place in Europe. If you were speaking to that audience about the importance of healthcare in Latin America, what key message would you convey?
MD: Latin America’s healthcare system is still evolving, with significant challenges, particularly in access to care. While efforts have largely concentrated on densely populated urban areas, many rural regions remain underserved. This disparity is especially pronounced in Mexico.
In Mexico, major private hospital developments are concentrated in cities like Mexico City, Guadalajara, and Monterrey, as well as some tourist areas. However, vast parts of the country still struggle with limited healthcare access. On the public side, institutions like IMSS Bienestar are designed to serve low-income populations, but they are under immense pressure and heavily overburdened.
The recently approved 2025 budget under the current government’s administration aims to improve this system, but it is clear that the funding will not be sufficient to meet demand. As a result, private healthcare groups are aggressively increasing their footprint, both by expanding current facilities and building new state-of-the-art ones. The key priority country-wise is investing in better and newer hospitals and properly equipping them to expand healthcare access for all socioeconomic groups—not just the wealthiest, who can afford premium institutions.
To add some perspective, before moving to Mexico, I spent five years in Asia, working extensively with state-of-the-art countries like Singapore, South Korea, and Australia. These nations have nearly universal healthcare access and are now focused on the next stage: digitalization.
Expanding healthcare access is only part of the equation; optimization and productivity are equally critical. The healthcare workforce is under immense strain—there are not enough doctors and nurses, and those in the field face a high risk of burnout. This is where digital technologies play a crucial role, enhancing efficiency and maximizing resources.
For hospitals that are already well-equipped, the next logical step is to improve productivity through digitalization. By integrating these technologies, we can ensure that healthcare systems are not only accessible but also sustainable in the long run.
EF: Given your experience in a region that has successfully integrated software and hardware into healthcare delivery, how would you assess Mexico’s level of adoption? If you were to outline a roadmap, what would be the first three steps to accelerate progress?
MD: When I arrived in Mexico a year and a half ago, the digital gap in healthcare was immediately apparent. One striking data point is the adoption of electronic medical records (EMRs). In countries like Singapore, South Korea, and Japan, EMR implementation is nearly 100%, with every tertiary hospital fully digitalized. In contrast, Mexico’s adoption rate is below 5%, meaning that 95% of hospitals still rely on paper records. This not only creates inefficiencies but also increases the risk of human error, impacting patient safety.
Addressing this gap requires a clear strategy, and looking at successful models elsewhere, the first step must come from a government-led initiative. While private hospitals lead in innovation, they alone cannot transform the entire healthcare system. The majority of patients in Mexico receive care through public institutions like IMSS and IMSS Bienestar hospitals, which operate through public tenders funded by taxpayer money. However, EMRs are still not a standard requirement in these tenders.
Beyond funding, regulatory frameworks must be established. Modern enterprise informatics solutions incorporate artificial intelligence and advanced analytics, yet Mexico, like many other countries, still lacks clear regulations for their implementation. The U.S. and European Union have faced similar challenges and are still refining their policies. Mexico has the opportunity to leverage its progress and fast-track its own regulatory framework to accelerate digital adoption.
While digitalization is already part of national strategic plans, tangible action is needed. If public hospitals take the lead, the entire ecosystem will follow. Otherwise, fragmented private sector efforts will not be enough to drive systemic change. A key challenge here is interoperability. Hospitals use a wide range of equipment from different manufacturers, each with its own software, creating communication barriers between systems. These devices and platforms need to "speak the same language" to ensure seamless data exchange.
To address this, hospitals require comprehensive digital platforms that integrate and standardize data across various systems. Brand-agnostic enterprise solutions, like Philips’ IntelliBridge, serve this purpose by aggregating information from diverse sources into a single, cohesive system.
While some hospitals develop custom solutions, these often lack the level of interoperability needed for efficient healthcare delivery. Leading industry players, such as Philips, offer vendor-agnostic platforms capable of connecting with nearly every available brand, enhancing workflow, and making real-time data accessible to clinicians.
One of the biggest challenges nowadays is to transform raw data into actionable information. Ultimately, the healthcare sector generates more data than it can currently utilize. Without robust integration, this data remains fragmented and underutilized. By implementing scalable, interoperable solutions, hospitals can significantly improve efficiency, decision-making, and patient outcomes.
EF: What was your mandate when you stepped into this role six months ago in September? What vision were you entrusted with? Additionally, what kind of legacy are you striving to create?
MD: There are several key missions I would like to highlight. Firstly, I came from the APAC region, which is a completely different environment in two significant ways. One, it is highly technology-driven and value-oriented, whereas in Latin America, although with exceptions, we are not at that stage yet. My role involves bringing this knowledge and approach with the goal of providing long-term and sustainable value rather than engaging in cost-cutting wars, which have historically been prevalent in Mexico.
I believe we have made strong progress in this area, particularly in some public institutions and major private hospital chains. We have successfully introduced our enterprise solutions, which go beyond entry-level technology. These solutions are connected, data-driven, and designed not only to enhance clinical outcomes for patients but also to optimize hospital workflows. Our approach has been to work alongside hospitals as long-lasting trusted partners rather than simple one-off vendors, demonstrating that we have global experience and proof points to implement these solutions effectively.
For instance, I often reference my involvement in a project in South Korea, where we connected all ICU units across different hubs to a central command center that was not physically located within any single hospital but could operate remotely anywhere in the country. Similar setups could exist in Mexico, potentially driving big efficiencies in care costs. Showcasing how Philips has successfully implemented this model in other regions has been an eye-opener for some local healthcare professionals.
On the other hand, by growing up in Europe, being educated in the US, and having worked in Asia, I have been exposed to high standards of business ethics. I also see the potential to instill similar practices here, especially in a country like Mexico, which has historically been more exposed to higher levels of corruption compared to global standards.
It is a journey, and improving this aspect is a significant part of the legacy I want to leave. Ultimately, my goal is to help build a better healthcare environment in Mexico, with an emphasis on promoting good practices and ethical standards.
I would highlight these two points—introducing long-term value-driven and technology-focused solutions and fostering better governance and business practices—as key elements of my legacy.
EF: What is currently driving performance, especially with the plan in Mexico? Also, what is the strategic importance of Mexico for Philips in terms of assets and portfolio, and what does the future look like for the company here?
MD: Back in the day, Philips used to be a conglomerate of very diverse businesses. Nowadays, we are on a journey to specialize in categories where innovation truly makes a difference in healthcare and wellness. Over the past 10-15 years, Philips has been divesting from a range of diverse businesses like consumer electronics, domestic appliances, and lighting. We are now fully focused on healthcare and wellness. Within healthcare, we are putting significant effort into areas where innovation can create value.
Once a category becomes commoditized, where the focus is solely on streamlining manufacturing costs at scale, it no longer aligns with our approach as an innovation-driven company. At that point, we choose to divest, as other players, particularly in Asia, are often better equipped for that kind of business. Let them handle it; we will focus on areas where we can make a real impact. That is the core of our strategy.
In Mexico, we translate this approach into a focused commercial operation. Within the healthcare sector, our primary focus is on diagnostic imaging, image-guided treatment, and connected care, which involves monitoring patients and analyzing the data generated from these patients. Additionally, we emphasize personal health, which is more of a consumer business that spans areas like wellness, prevention, and well-being, as well as care for mothers and children, along with personal care products like toothbrushes and male grooming items. It all forms a continuum-of-care idea both in the hospital and home environments.
EF: How do you view the current level of adoption and openness to new technologies in hospitals in Mexico, particularly from the perspective of CTOs? What is the rate of adoption that you are seeing in the hospital environment?
MD: Hospitals are definitely becoming more open to new technologies. The fact that digitalization is on the agenda for the next six years is already a step forward. In the private sector, there is an increasing investment in higher-value technologies, especially among top players. These hospitals need technology to differentiate themselves. Unlike the public system, where patients typically go to the nearest or assigned hospital, private hospitals offer patients a choice. When people pay out of pocket or use insurance, they select where they want to go, which drives private hospitals to set themselves apart from the competition.
In my experience, when speaking with the C-suite executives of these private hospitals, they are very receptive to discussions about innovation and advanced technologies. This aligns with their strategic goals, particularly during times of significant inorganic growth, where they are acquiring or building new hospitals. They want to ensure these new hospitals attract the necessary patient flow to generate a solid return on investment.
EF: How do you future-proof your talent pool? How do you retain them, and what kind of resources or talent are you developing to ensure the continuity of Philips' 85-year presence in Mexico?
MD: One of my key priorities here is developing the internal talent we have, not just for Philips Mexico but also for the wider Philips organization. As someone with global experience, I have had the opportunity to work in various parts of the world, and I believe Mexico has not yet been able to export much of its talent within our global network. One of my personal goals is to help develop the talented individuals we have in Mexico so that, in the future, they can pursue global roles if they wish.
Mexico offers a complex healthcare environment, which is an excellent learning ground for understanding this business. If you can thrive in Mexico's healthcare system, you will likely excel anywhere else in the world. For Philips, it would be highly beneficial to have Mexican talent exporting the knowledge and resilience developed here to other parts of the world, whether it is different countries, regions, or global teams.
We also want to ensure diversity within our team in Mexico. While around 90% of my team is local, we also bring in talent from other countries for some selected roles, which enriches our organization. It is a win-win, offering new perspectives while benefiting from the local understanding of the business. This diversity not only adds value to the Mexico organization but also enriches the individuals themselves, allowing them to enhance their backgrounds with what I would call the "Mexico School of Business." And I can confidently say it is an excellent learning experience.
EF: Which two variables of the Iron Triangle (quality/price/ time) do you think would be most helpful for Mexico in navigating a technology transition?
MD: I think we need to strike a balance. We need to prioritize speed without compromising on quality, which is non-negotiable. We must operate swiftly to adapt to market needs, the same way the healthcare ecosystem needs to be agile to prevent delayed access to innovation. At the same time, we have to be mindful of long-lasting sustainability. So, while quality remains our top priority, we also need to find a way to move efficiently without compromising our future. Ultimately, it is about finding that realistic balance.
Phillips comes from a strong background where we understand the critical importance of quality, especially in healthcare, because it directly impacts lives. Our motto of "better care for more people" reflects that commitment. It is not just about reaching more people but also ensuring that they receive better care, which ultimately ties back to quality. Since quality is non-negotiable, the focus should be on finding a balance between time and price. We need to deliver healthcare solutions efficiently and within budget for our customers while maintaining the highest standards of care.
EF: Phillips is celebrating 85 years this year. What will your speech focus on?
MD: We are still in the anniversary period, so we will continue to celebrate until the very end. It’s part of the Mexican culture to celebrate everything and anything!
This anniversary is a testament to Phillips’ long-standing commitment to Mexico. We are not new here—we have been in the country for a long time with a very strong presence. We have had several large manufacturing hubs in Mexico, and there is always the potential to expand again if the conditions are right. Nearshoring offers a competitive advantage, and we will see how the market unfolds in the next few months.
The 85 years really matter because, in our business, we do not just sell equipment. We provide solutions that will be used for 10-15 years, which means we are committed to the entire lifecycle of that equipment. For example, an MRI machine lasts much longer than a phone. Our goal is not just to sell the equipment and walk away; we provide service, maintenance, and guidance to ensure it runs at its highest potential. When we sign a contract, it is not just about the sale but the long-term partnership.
Being here for so long reassures our customers that we will not just disappear in a few years. They know they can count on us to support their equipment long into the future. This long-term approach to customer relationships is a key part of our value proposition—we are not just a vendor; we are a partner. This is the way we envision doing business in Mexico.
EF: Do you have a final message for our readers?
MD: I would summarize it by referring to our Phillips global motto: "Better care for more people." This perfectly encapsulates the key ideas we discussed, such as expanding healthcare access and the digitalization of healthcare. Our goal is to reach as many people as possible, regardless of their income. This is a core ethical value for us. Additionally, we aim to do this sustainably and efficiently, helping hospitals improve their operations so they can reinvest their resources to further expand their reach.
