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EF: Seven years ago, you founded Mutuus. How has the company grown since, and how are you looking to impact Mexico’s healthcare industry?
JLB: After 30 years in healthcare across various sectors, particularly in hospitals, I saw a significant opportunity to transform healthcare in Mexico through a new insurance system. I observed that around 40% of hospital visitors lacked health insurance. Hospital bills varied significantly based on insurance coverage. I researched the economics of private healthcare in Mexico. Shockingly, only 4 million people could afford private health insurance, while company benefits covered less than 8 million in a population of 128 million.
Further exploration of the healthcare market in the past two decades revealed stagnant growth in health insurance. Individual policies compounded by 1% annually, while collective policies for companies displayed a 5% growth rate. Notably, there was a 150% pricing difference between individual and collective policies, indicating companies needed to gain volume, resulting in price hikes. This pricing dilemma made insurance policies unaffordable for the majority, leading many, especially older people, to discontinue payments after a decade or more. The situation highlights a pressing need for a transformative business model to enhance healthcare access for a broader population.
I began examining the healthcare journey of individuals in Mexico, focusing on the middle class. This demographic typically enjoys a comfortable lifestyle but struggles to afford health insurance. While they can manage costs for doctor visits, medications, and tests when they fall ill, hospital care becomes unaffordable. To address this issue, we are leveraging technology to enhance their healthcare experience. Initially targeting the middle class, we recognized the need to quickly expand our reach to other demographics, particularly through small and medium-sized companies. By partnering with these businesses, we can offer affordable and comprehensive healthcare solutions. Our annual membership provides unlimited services, discounts, and coverage. Among our most popular services is 24/7 digital emergency care, which instantly connects members with specialized doctors. With our digital ER, Mutuus is able to solve 50% of medical emergencies through telemedicine. Additionally, this approach fills a gap in Mexico's public healthcare system, where access to specialized care is limited.
Our digital membership perks extend to in-office doctor consultations, diagnostic exams, medications, mental health services, and more. A significant benefit is our hospital expense coverage due to our partnership with MetLife. This coverage allows members to access quality hospitals without co-insurance or deductibles, easing financial concerns. We are already providing these services to thousands and aim to reach millions, ensuring access to quality healthcare for all.
EF: Can you elaborate on what makes Mutuus an ideal partner in healthcare?
JLB: What sets Mutuus apart is our comprehensive support throughout the entire process of addressing health issues until resolution. We are also introducing solutions for chronic illnesses that need ongoing monitoring and adherence to treatment. By focusing on accurate diagnosis before hospitalization, we ensure the right treatment from the beginning, preventing costly complications in the long run. Unlike traditional insurance, we prioritize early intervention and informed decision-making. As our memberships grow, we aim to reshape private healthcare in Mexico by providing volume and quality care, especially as public services continue to struggle due to underinvestment. Ultimately, private and auxiliary services will play a pivotal role in meeting the healthcare needs of the entire population.
While everyone agrees that prevention is crucial, there is a challenge in Mexico as there's little emphasis on a prevention culture. Despite efforts and technology from health tech companies, adherence to prevention programs remains low. To truly impact a person's health, the key is to provide high-quality services and ensure a proper diagnosis.
EF: What is your future plan, and where do you see MUTUUS heading?
JLB: I envision Mutuus expanding into global markets and addressing similar issues to those we are solving in Mexico. A remarkable statistic is that 88% of our members did not have health insurance before, indicating we are creating a new generation of insured individuals. Whether perceived as insurance or health tech, we are shaping private healthcare usage nationwide. Our vision is to become the largest healthcare community in Latin America and beyond. By expanding our community, we aim to align the interests of various healthcare players, placing the patient at the center while ensuring economic benefits for all involved. It is not just a concept; we are actively making it happen.
EF: From the beginning until now, what has been your pitch to attract more investment?
JLB: Our pitch is not challenging because the problem we are solving is evident. Mexico’s public healthcare system needs improvement, while private healthcare is only accessible to a few. Mutuus has identified a large gap in the middle, where our business model, driven by technology and an understanding of healthcare dynamics, empowers patients. We put the patient at the center by aligning forces through our membership. As we grow and attract investments, the money flows back into the healthcare system, benefiting everyone. We aim to create a fairer system where all stakeholders win, acknowledging the necessity for industries like pharmaceuticals and hospitals to thrive while ensuring fairness for everyone. The current healthcare system in Mexico and globally needs a positive change.
EF: Celebrating your thirty years of experience in the healthcare sector, what would you consider your major achievements?
JBL: All my experience boils down to Mutuus. Healthcare encompasses more than technology or launching drugs; it entails ensuring access and saving lives. The revolution lies in simplifying and broadening healthcare for more people. A health issue is stressful for both the patient and their family, affecting them physically, financially, and emotionally. People worry about the outcome and whether they are in capable hands. We aim to make healthcare easy and accessible, alleviating these stresses for everyone.
EF: Do you have any final message for our readers or other stakeholders?
JBL: The final message is clear: solving complex healthcare issues, especially in countries like Mexico, will require efforts beyond politicians or governments alone. It is up to us, the community, to take the steps. Private investment and collaboration with healthcare providers are crucial, presenting a significant opportunity for all stakeholders involved.
