The health maintenance organization (HMO) incurred a net loss of P1.18 billion in the first half of the year.
Eleven out of 29 HMO companies ended the year with net losses
Total capital stock increased by 21.12% to P5.65 billion
Invested assets dropped by 25.51% to P18.68 billion
Total assets of HMO companies stood at P61.76 billion, down 2.92% from last year
Total liabilities rose by 4% to P51.45 billion
Total equity dropped by 27% to P10.31 billion
HMO sector's net loss exceeds P1-B in H1
Oct 4, 2023 04:53 AM
At a glance
The health maintenance organization (HMO) industry recorded a net loss in the first half of the year, reversing the previous year's profit, data from the Insurance Commission (IC) showed.
According to the recently released IC report, the HMO sector registered losses amounting to P1.186 billion from January to June 2023, a significant shift from the P1.18 billion net income recorded in the previous year.
During the period, total healthcare benefits and claims paid by HMO providers rose by 13 percent to P31.21 billion compared to P27.23 billion in the previous year.
Meanwhile, revenues posted a 15 percent increase to P32.13 billion from P28.01 billion in 2022. Out of this total, membership, enrolee, and administrative service fees accounted for P31.21 billion.
The IC report showed that 11 out of the 29 companies operating in the HMO sector, including some of the largest ones in the country, concluded the first semester with net losses.
These companies include Medicard Philippines, Inc. (P723.51 million), MaxiCare HealthCare Corp. (P322.15 million), Asalus Corp. or Intellicare (P148.632 million), Value Care Health System, Inc. (P102.5 million), and Pacific Cross Health Care, Inc. (P48.11 million).
Additionally, other HMO firms that experienced financial losses were Health Delivery System, Inc. (P17.16 million), Health Care & Development Corp. of the Philippines (P9.43 million), Forticare Health Systems International, Inc. (P7.16 million), and Carewell Health Systems, Inc (P3.18 million).
Finally, Asian Care Health Systems, Inc. (P857,608) and Optimum Medical & Health Care (P570,588) also incurred losses during the first semester.
The total capital stock increased by 21.12 percent, reaching P5.65 billion compared to P4.67 billion.
Conversely, the HMO sector's invested assets decreased by 25.51 percent to P18.68 billion from P25.08 billion.
As of the end of June, the total assets of HMO companies amounted to P61.76 billion, showing a decline of 2.92 percent from P63.61 billion the previous year.
In contrast, total liabilities rose by four percent to P51.45 billion from P49.52 billion.
The industry's total equity experienced a year-on-year decrease of 27 percent, falling to P10.31 billion from P14.09 billion last year.