Philippine HMOs see 17.3% surge in healthcare payouts

This was equivalent to $255.9m in healthcare benefits.

The Philippines’ health maintenance organisations (HMOs) paid out ₱15.05b ($255.85m) in healthcare benefits in the first quarter (Q124), marking a 17.3% increase from the previous year, data from the Insurance Commission (IC) showed.

Despite this rise in expenses, HMOs returned to profitability due to higher revenues. Total industry revenues reached ₱18.68b ($317.56m) in Q124, up 20.09% year-over-year (YoY), resulting in a net income of ₱6.8m ($115,600).

The IC attributed the revenue increase to a rise in membership fee collections, totalling ₱17.78b ($303.26m) for Q124. 

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HMOs also saw significant growth in total assets by ₱71.31b ($1.21b) (10.07%). 

However, total liabilities increased by 16.11% to ₱61.49b ($1.05b), driven by a 15.96% YoY rise in membership fee reserves and a 51.57% increase in claims reserves.

While total capital stock and invested assets increased, total equity declined due to an 85.33% drop in retained earnings, equivalent to ₱5.31b ($90.37m).

($1.00 = ₱58.18)