THE HEALTH maintenance organization (HMO) industry posted a P1.19-billion net loss in the first semester, data from the Insurance Commission (IC) showed.
The net loss recorded in the period was a reversal of the industry’s P1.18-billion net profit in the same period last year, IC data based on the unaudited interim financial statements submitted by 28 out of 29 HMOs showed.
The HMO industry’s net loss came even as total revenues rose by 14.71% year on year to P32.14 billion from P28.02 billion. Of the total, fees from memberships, enrollees, and administrative services comprised P31.21 billion, up 12.98% from P27.63 billion a year ago.
Total capital stock rose by 21.12% to P5.65 billion from P4.67 billion.
Benefits and claims paid out by the industry increased by 32.69% to P26.22 billion at end-June from P19.76 billion in the same period last year.
Total expenses increased by 24.1% to P33.32 billion from P26.84 billion previously.
Meanwhile, the sector’s invested assets dropped by 25.51% to P18.68 billion from P25.08 billion.
The total assets of HMO companies went down by 2.92% to P61.76 billion at end-June from P63.61 billion last year.
Meanwhile, total liabilities went up by 3.88% to P51.45 billion from P49.52 billion.
The industry’s total equity dropped by 26.83% year on year to P10.31 billion from P14.09 billion last year.
Of the 29 active HMOs, 11 posted net losses in the first half, the IC data showed.
Meanwhile, Aveda Managed Care, Inc. booked a net income of P81.12 million in the first half to lead the industry, followed by Philhealth Care, Inc. with P31.42 million. Health Maintenance, Inc. posted net earnings worth P16.28 million, Wellcare Health Maintenance, Inc. had P16.05 million, and Life & Health HMP, Inc. booked a net income of P12.58 million. — AMCS