Rising Cost of Healthcare Threatening Sustainability of Private HMOs – Chairman, Hallmark HMO
The rising cost of healthcare in Nigeria is exacerbating pressures on Health Management Organisations (HMOs) and threatening their sustainability, Mr. Eddie Efekoha, the Group CEO, Consolidated Hallmark Holdings Plc & Chairman, Hallmark HMO, has said. He said the growing pressure is putting private HMOs in a precarious financial position as heath insurance premium remain static. […]
The rising cost of healthcare in Nigeria is exacerbating pressures on Health Management Organisations (HMOs) and threatening their sustainability, Mr. Eddie Efekoha, the Group CEO, Consolidated Hallmark Holdings Plc & Chairman, Hallmark HMO, has said.
He said the growing pressure is putting private HMOs in a precarious financial position as heath insurance premium remain static.
“The cost of providing quality healthcare is rising sharply thereby threatening shareholders’ funds of many private businesses without any clear mechanisms for cost recovery” he said at the Stakeholders’ Engagement 4.0 of Hallmark Health Services Limited (Hallmark HMO) held Wednesday in Abuja.
He said Hallmark HMO understand the delicate balance between financial realities and healthcare accessibility but added that this balance is becoming increasingly unsustainable.
Mr. Efekoha further emphasized that whilst universal health coverage is a worthy and necessary goal it must not come at the expense of the private sector’s balance sheet; otherwise, investments into the sector would be discouraged.
“Private HMOs play a pivotal role in the healthcare ecosystem, and they must be protected and supported, not weakened, in the process of achieving national health objectives” he stated.
According to him, when access to quality healthcare is deprioritized due to economic pressures, the ripple effects are severe.
“A healthy workforce is the lifeblood of any thriving business. Unexpected health emergencies can create significant financial burdens for both the employee and the business, potentially jeopardizing the very survival of these enterprises” he noted.
He said the theme of the stakeholders engagement, “the influence of Global Downturn on Health Insurance Coverage for SMEs” is germane because of “if SMEs are to continue to drive economic growth, innovation, and employment, then providing affordable and sustainable healthcare must be central to our shared agenda.”
Speaking on the regulatory space he indicated that the regulatory environment is becoming increasingly challenging for operators in the industry.
“One of the most pressing concerns is the lack of clarity and separation of roles between private HMOs, state-sponsored health schemes, and the National Health Insurance Authority (NHIA). These overlaps often result in conflicting mandates and policies, which can confuse stakeholders and hinder the delivery of efficient and coordinated care” queried.
He this called for industry stakeholders collaboration if the goal to expand access to healthcare is to be realized adding that disputes or complaints must be resolved quickly and fairly.
In her remarks at the event, Mrs. Oladotun Adeogun, the MD/CEO Hallmark HMO said the company has over 1,500 hospitals across the country under their partnership.
She said this is the first time the engagement is happening in the north and this is chiefly to engage with regulators and clients in the Northern region.
The company established in 2018 she said has gained traction because of its emphasis on quality service delivery.
Competition is tough but we’ve worked more on quality service to stay in business she said adding that all the hospitals partnering with Hallmark HMO meet regulatory prescriptions.
Delivering a goodwill message, His Highness, Alhaji Ahmed Nuhu Bamalli (CFR), the Emir of Zazzau said most insurance companies are in a race to the bottom as they fight themselves to death in price wars.
Represented by Dr. Mohammed Aliyu Bamalli, Durbin Zazzau, the Emir said innovation will help SMEs benefit from health insurance.