THE HEALTH Maintenance Organization (HMO) industry swung to a P319-million net loss in the first quarter after the decline in invested assets and equity, data from the Insurance Commission showed.
The quarter’s net loss was a reversal of the industry’s net profit of P864 million in the same period last year, based on the unaudited interim financial statements submitted by 25 licensed companies and four others with pending licenses.
It also came despite revenues rising by 12% to P15.55 billion from P13.88 billion last year. Of these, fees from memberships, enrollees, and administrative services accounted for P15.37 billion, up 12.7% from P13.64 billion previously.
Total capital stock also climbed by 25.8% to P5.66 billion from P4.5 billion.
Benefits and claims paid out by the industry likewise went up by 35.3% to P12.83 billion in the January-to-March period from P9.48 billion.
Meanwhile, the sector’s invested assets fell by 37.7% to P16.36 billion from P26.25 billion.
Total assets likewise slipped by 6.9% to P64.79 billion at end-March from P69.62 billion last year. Liabilities also inched down by 1.1% to P52.96 billion from P53.56 billion.
The equity of HMO companies in the first quarter stood at P11.83 billion, down by 26.3% year on year from P16.06 billion.
Data from the commission’s website showed nine out of the 29 HMOs incurred a net loss as of end-March. — Aaron Michael C. Sy