{"id":17319,"date":"2016-11-18T01:49:07","date_gmt":"2016-11-18T06:49:07","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/shedding-light-into-the-mexican-institute-for-social-security\/"},"modified":"2016-11-18T01:53:48","modified_gmt":"2016-11-18T06:53:48","slug":"shedding-light-into-the-mexican-institute-for-social-security","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/shedding-light-into-the-mexican-institute-for-social-security\/","title":{"rendered":"Shedding light into the Mexican Institute for Social Security"},"content":{"rendered":"<p>Mexico has long been affected by high corruption levels. According to Transparency International, Mexico occupies the 95<sup>th<\/sup> place -out of 168 countries- in terms of corruption perception, with a score of 35% (compared to top place Denmark\u2019s 91%). Further, the World Economic Forum\u2019s locates Mexico in the 51<sup>st<\/sup> place -out of 138 countries-in terms of global competitiveness, as measured by a combination of 12 indicators; Mexico\u2019s worst-performing indicator is <em>Institutions<\/em>, which focuses on legality, rule of law, government efficiency and trust, where Mexico ranks 116th. Per some estimates, corruption costs Mexico between 2 and 10% of its GDP. It is fair to say, therefore, that corruption is a tangible, severe problem for the country. (1) (2) (3)<\/p>\n<figure id=\"attachment_17312\" aria-describedby=\"caption-attachment-17312\" style=\"width: 300px\" class=\"wp-caption alignright\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-18-00_33_25-.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-17312 size-medium\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-18-00_33_25--300x216.png\" alt=\"The Mexican Institute for Social Security, IMSS, is the largest social security provider in Latin America. Source: IMSS\" width=\"300\" height=\"216\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-18-00_33_25--300x216.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-18-00_33_25--768x553.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-18-00_33_25--600x432.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-18-00_33_25-.png 831w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-17312\" class=\"wp-caption-text\">IMSS\u00a0is the largest social security provider in Latin America. Source: IMSS<\/figcaption><\/figure>\n<p>Mexico\u2019s social security Institution, IMSS (Instituto Mexicano del Seguro Social), provides health care services and manages retirement funds for its almost 75 million affiliates (60% of the population). With more than 370,000 collaborators, it is one of Mexico\u2019s largest employers. It operates an infrastructure that includes 1,786 medical units (primary, secondary and tertiary care). (4) (5) (6)<\/p>\n<p>What does it take to run such a bulky and complex organization? An intricate symphony of effort, talent, inertia, and a lot of money. IMSS is one of the main line items of the government\u2019s P&amp;L: in 2017 it will receive an annual budget of US$31 billion, or about 13% of the total national budget. (7)<\/p>\n<p>Unfortunately, such a large budget serves as growing soil for corruption incidents, as have been evidenced by some notorious instances; to name a few:<\/p>\n<ul>\n<li>In 2015, IMSS awarded hemodialysis contracts to Pisa, whose expected savings were close to US$70 million; nevertheless, Pisa was being investigated for suborning Guatemalan officials for US$12 million to secure a hemodialysis contract in that country, which the company eventually won but failed to meet (8)<\/li>\n<li>In 2010, a leaked recording evidenced an IMSS employee asking for a 5% cut of a US$4 million contract to favor its awarding to Novartis (9)<\/li>\n<li>In 2006, IMSS lost over US$30 million after acquiring serum and insulin that were overpriced by 23% and 58%, respectively. The supplying laboratories were Baxter, Fresenius, Eli Lilly and Pisa (10)<\/li>\n<\/ul>\n<figure id=\"attachment_17316\" aria-describedby=\"caption-attachment-17316\" style=\"width: 300px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-17-15_01_04-TOM-Challenge-2-Word.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-17316 size-medium\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-17-15_01_04-TOM-Challenge-2-Word-300x253.png\" alt=\"2016-11-17-15_01_04-tom-challenge-2-word\" width=\"300\" height=\"253\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-17-15_01_04-TOM-Challenge-2-Word-300x253.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-17-15_01_04-TOM-Challenge-2-Word-768x648.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-17-15_01_04-TOM-Challenge-2-Word-1024x864.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-17-15_01_04-TOM-Challenge-2-Word-600x507.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/2016-11-17-15_01_04-TOM-Challenge-2-Word.png 1444w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-17316\" class=\"wp-caption-text\">The transparency website provides interactive charts and graphics to detail procurement figures. Source: IMSS.<\/figcaption><\/figure>\n<p>To counter this, in late 2011, IMSS launched a transparency tool aimed at providing full access to its purchasing history. With this, any person can scrutinize the entirety of the Institute\u2019s procurement decisions, which affect about 10% of its budget (US$3.5 billion). The tool runs on a dedicated website and features three main areas: (11) (12)<\/p>\n<ul>\n<li>Historic purchasing information, dating as far back as 2011 and including de aggregated data by region, product or service acquired, vendor and type of contract allocation<\/li>\n<li>Expected purchases for remainder of current period, including region, product or service demanded and application deadlines<\/li>\n<li>Dedicated section to access customized data queries, based on a specific product or vendor<\/li>\n<\/ul>\n<p>The results look promising. At least in terms of increased public engagement, the transparency tool has proved to be an effective way to get more people to look at the Institute\u2019s numbers, and make questions about them. For instance, the amount of information requests directed at IMSS ballooned from around 9,000 in 2010 to almost 30,000 in 2015 (actually, IMSS is the government agency that receives the most information requests). (12) (13)<\/p>\n<p>Looking forward, the tool\u2019s impact could be further enhanced by enabling a friendlier interface to download information; currently, it is difficult to consult a large data set on the website, but the ability to export it to a traditional spreadsheet would allow the automation of auditing exercises by a layperson. Also, IMSS could work on enforcing more stringent restrictions upon vendors that recur to corruption to influence contract allocation processes; having a \u201cblack list\u201d of banned vendors, including not only firms whose wrongdoing has been proved, but also companies undergoing investigation for misconduct would greatly contain the recurrence of the practice.<\/p>\n<p>These measures should allow IMSS\u2019 procurement function to become corruption-free, once and for all. What\u2019s at risk, otherwise? Providing costlier medicines and subpar services to 75 million people. Mexicans have endured burdensome corruption levels in many aspects of their lives for many years. Would they indefinitely survive a corrupt healthcare provider? <em>(680 words)<\/em><\/p>\n<p>Sources:<\/p>\n<p>(1) Transparency International, &#8220;Corruption Perception Index,&#8221; https:\/\/www.transparency.org\/country\/#MEX, accessed November 17, 2016<\/p>\n<p>(2) World Economic Forum, &#8220;The Global Competitiveness Report 2016\u20132017,&#8221; http:\/\/www3.weforum.org\/docs\/GCR2016-2017\/05FullReport\/TheGlobalCompetitivenessReport2016-2017_FINAL.pdf, accessed November 17, 2016<\/p>\n<p>(3) Salda\u00f1a, Ivette. &#8220;Corruption costs Mexico up to 10% of its GDP,&#8221; <em>El Universal<\/em>, May 21, 2015, http:\/\/archivo.eluniversal.com.mx\/in-english\/2015\/corruption-cost-mexico-105997.html, accessed November 17, 2016<\/p>\n<p>(4) IMSS, &#8220;Conoce al IMSS,&#8221; http:\/\/www.imss.gob.mx\/conoce-al-imss, accessed November 17, 2016<\/p>\n<p>(5) IMSS, &#8220;Informe 2015-2016,&#8221; http:\/\/www.imss.gob.mx\/sites\/all\/statics\/pdf\/informes\/20152016\/04-introduccion.pdf, accessed November 17, 2016<\/p>\n<p>(6) UC Davis, &#8220;Mexico: Social Security, Migration, Economy,&#8221; http:\/\/migration.ucdavis.edu\/mn\/comments.php?id=3048_0_2_0, accessed November 17, 2016<\/p>\n<p>(7) Editorial staff. &#8220;Aprueban diputados en lo general el Presupuesto 2017; reasignan 67 mil 707 mdp,&#8221; <em>Proceso<\/em>, November 10, 2016, http:\/\/www.proceso.com.mx\/462211\/aprueban-diputados-en-lo-general-presupuesto-2017-reasignan-67-mil-707-mdp, accessed November 17, 2016<\/p>\n<p>(8) Editorial staff. &#8220;El IMSS entrega 20 contratos a empresa investigada por malas pr\u00e1cticas en M\u00e9xico y Guatemala,&#8221; <em>Animal Pol\u00edtico<\/em>, September 8, 2015, http:\/\/www.animalpolitico.com\/2015\/09\/el-imss-entrega-20-contratos-a-empresa-investigada-en-mexico-y-guatemala\/, accessed November 17, 2016<\/p>\n<p>(9) Rodr\u00edguez, Ruth. &#8220;Cesan a funcionario por esc\u00e1ndalo IMSS-Novartis,&#8221; <em>El Universal<\/em>, November 11, 2010, http:\/\/archivo.eluniversal.com.mx\/nacion\/181784.html, accessed November 17, 2016<\/p>\n<p>(10) S\u00e1nchez, Axel. &#8220;Fraude contra IMSS equivale a la compra de 727 ambulancias,&#8221; <em>El Financiero<\/em>, April 08, 2015, http:\/\/www.elfinanciero.com.mx\/empresas\/fraude-contra-imss-equivale-a-la-compra-de-727-ambulancias.html, accessed November 17, 2016<\/p>\n<p>(11) IMSS, &#8220;IMSS compr\u00f3,&#8221; http:\/\/compras.imss.gob.mx\/?P=imsscompro, accessed November 17, 2016<\/p>\n<p>(12) OECD, &#8220;Public Procurement Review of the Mexican Institute of Social Security,&#8221; https:\/\/books.google.com\/books?id=USBWAgAAQBAJ, accessed November 17, 2016<\/p>\n<p>(13) Editorial staff, &#8220;IMSS, el que m\u00e1s solicitudes de informaci\u00f3n tuvo en 2015: Inai,&#8221; Procesohttp:\/\/www.proceso.com.mx\/424635\/imss-el-que-mas-solicitudes-de-informacion-tuvo-en-2015-inai, accessed November 17, 2016<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Largest Latin American social security provider takes its procurement record keeping to the web in search for increased transparency.<\/p>\n","protected":false},"author":2243,"featured_media":17335,"comment_status":"open","ping_status":"closed","template":"","categories":[1054,2029,41,2480,2481,341,2479,524],"class_list":["post-17319","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-corruption","category-digitization","category-healthcare","category-imss","category-instituto-mexicano-del-seguro-social","category-mexico","category-social-security","category-transparency"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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