Federal Govt Urged To Reconsider Stance On HMOs Recapitalisation

The chairman of Hallmark Health Services Limited (Hallmark HMO), Mr. Eddie Efekoha has charged the federal government to reconsider its stance on recapitalisation of Health Management Organisations (HMOs) in the country amidst tough business operating environment.

The National Health Management Act (NHIA) 2022, had required that, for HMO to retain business, they must capitalised up to N400 million for national, N200 million for state and N100 million for zonal operators respectively.

The NHIS defines HMOs as a private or public incorporated company registered by the Scheme solely to manage the provision of health care services through health care facilities accredited by the scheme.

Highlighting challenges being faced by both practitioners and operators within the healthcare management sector, Efekoha, who is also the group managing director of Consolidated Hallmark Holdings Plc said, just like other industries, the sector is battling escalating cost of doing business due to the devaluation of the local currency leading to the rise in cost of treatment. 

‘Most of the drugs these days from the pharmacies have been dollarised and when you convert them to Naira, it be ones unaffordable to most patients,’ he noted.

These, he stressed, were further compounded by worsening economic situation which is making healthcare access and deliverables inaccessible and unaffordable.

Speaking at the 2024 Hallmark HMO’s Annual Stakeholders’ Engagement in Lagos, at the weekend, Efekoha called on government to reconsider its policy redirection on recapitalisation as obtained in the new NHIA Act passed into law in 2022 during the leadership of ex-president, Muhammadu Buhari.

To him, “the current operating environment is not only challenging, highly demanding, but it does not support growth or sustenance of the business. It is strongly believed that it is not yet time to increase capital base for HMOs, when, indeed, most of them are annually declaring losses and burning capital, nor does it help improve the market and create needed awareness when private players are restrained to limited coverage.”

Another threat to healthcare access, he said, is the regulatory environment where private HMOs are having businesses being threatened by government scheme, adding that, “while we support the pronouncement to make health insurance mandatory for all Nigerians, people should not be compelled to patronise only the government schemes, thus, leaving private players to scramble for top-up scheme or plans.”

He said: “If the sector therefore must grow, government role must be that of creating an enabling environment whereby the services of operators are bought by enrollees are indeed delivered seamlessly.”

The stakeholder engagement, he pointed out, was conceived 3 years ago as an avenue for collaboration with various stakeholders to generate insightful ideas geared towards proffering solutions to myriad of challenges facing customers seamless access to healthcare.

Reflecting the theme of the forum which is: ‘Transforming Healthcare Delivery: Integrating Customer-Centric Technology for Enhanced Access and Affordability,’ he stated that, technology that are tailored to the specific needs of customers and in the designed format, are much more necessary, hence, the need to integrate customer-centric technology for enhanced access and affordability.

“This is the focus of this event today and it could not have come at a better time. As well all come together, we need to agree on a mutually beneficial position where healthcare are accessible and affordable to users and gives good returns to shareholders,” he disclosed.

On her part, the managing director of Hallmark HMO, Mrs. Oladotun Adeogun said, the company has continued to spearhead deliberations on how to improve healthcare delivery through the Stakeholders Engagement event annually in view of the crucial role that healthcare plays in the productivity of the workforce.

The need to brainstorm and proffer solutions to the rising needs of the sector, she noted, remains crucial, hence, the various stakeholders take advantage of the opportunity provided to collaborate and network to address the challenges.