HMO industry’s profits hit P1.4 billion in first half

THE HEALTH maintenance organization (HMO) industry recorded a P1.38-billion net income in the first half of the year, exceeding the full-year profit earned in 2017, according to the Insurance Commission (IC).

In a statement, the commission said the local HMO industry booked a total revenue of P20.91 billion during the first six months of the year, based on the respective quarterly financial statements submitted by 28 HMOs. The industry also saw P19.53 billion in expenses during the January to June period.

“This is the first data gathering for quarterly statistics for the HMO industry which means that there is no other existing data available for comparison yet,” Insurance Commissioner Dennis B. Funa was quoted as saying in the statement.

The HMO industry’s first-half net income already exceeded the P937.5-million net income booked in 2017, according to the IC’s website.

Overall, the 28 HMOs reported assets totalling P36 billion as of end-June.

Maxicare HealthCare Corp., a member of the Equicom Group, was the biggest HMO in asset terms amounting to P8.55 billion as of end-June.

On the hand, Medicard Philippines, Inc. reported the highest equity and net income worth P1.75 billion and P554.36 million, respectively.

“Looking at the growth of the HMO as of the end of 2017 and for the first half of this year, we are optimistic that HMO industry will continue on its growth trajectory,” Mr. Funa added.

Mr. Funa also cited the entrance of two new HMOs last year, namely Health Care & Development Corporation of the Philippines as well as Ultima Health Systems, Inc.

To date, there are 31 licensed HMOs in the country. —