Along with many other Latin American countries, the health sector in Colombia has suffered from insufficient financing and a highly uneven distribution of healthcare resources. During the 1990s, the situation changed following the adoption of a new constitution in July 1991, which produced a far-reaching programme of political and social reform. In the health sector, the country embarked on an ambitious reform of the social security system with the aim of providing universal healthcare coverage by the year 2000. Although the reform process has been stalled by the country's recent economic recession, Colombia remains committed to the principle of universal healthcare coverage.

The Colombian medical market registered rapid growth up until 1998, when medical device consumption reached US$250 million. However, demand contracted sharply in 1999, as a result of the deepening economic recession and the deteriorating financial position of the public hospital network. The opening up of the medical market to foreign competition in the early 1990s produced a surge in medical equipment imports, which now account for as much as 90% of total consumption.

The medical equipment market is primarily served by agents and distributors, although some of the larger end-users do import equipment and supplies direct. There are some 500 companies distributing medical equipment in Colombia, the most important of which tend to handle a broad product range. Although the extensive use of air transport has had a centralising effect, Colombia remains a highly regionalised country. It is, therefore, advisable to choose an agent based in Bogota, who has an effective countrywide network of sub-agents in each of the main cities.

In the public sector, procurement of equipment and supplies above a certain threshold must be by public tender. The bulk of routine purchasing is done by the departmental health authorities for distribution to regional and local units. Individual hospitals do not usually have the resources to purchase equipment direct, although occasionally a university or specialist hospital may do so, in which case they are bound by the same regulations as other public entities. As hospitals are to be given greater financial autonomy, it may be that there will be more scope for them to undertake their own procurement in the future. The National Hospital Fund has traditionally been responsible for procurement of equipment for large capital investment projects, particularly aid-funded projects. It has an international projects division and a public tender division. The military health service undertakes its own procurement, but is bound by the same regulations as other government entities.

In the past, public entities were bound by government protectionist policies which required locally manufactured products to be purchased where available. These requirements have been abolished and the market opened up to foreign competition. Procurement in the private sector has always been less structured and the market more receptive to foreign goods.