• Saturday, December 09, 2023
businessday logo

BusinessDay

HCI Healthcare premium income up 2% despite tough environment

‘Metaphor’ – A paradigm shift in Nigerian healthcare

HCI Healthcare Ltd has grown its premium income by 2 percent in the 2022 financial year despite challenges in the operating environment.

According to the company, the perennial insecurity in the North and Southeast Regions, the rising cost of sourcing medical and other trained talents owing to trans-border migration and the alleged indebtedness as of December 2021, impacted business performance in 2022 business year.

Adekunle Omilani, chairman of the company speaking at its 21st Annual General Meeting said

Regrettably, the Company recorded a loss after tax of N222.8m, which reduced the its shareholders’ funds from N696 million in 2021 to N472.7 million in 2022, indicating a 32 percent decrease in her equity.

Read also: Ahmed clinches World Bank job as AED

According to him, the board and management has agreed to increase equity to over one billion naira to enable to company recover its loss, set it on the pathway to profitability and meet the regulatory requirement to continue business operations, recruit top sales executives with proven track record to improve private scheme income, conduct forensic audit on all medical claims for proper risk management, fast track the digital transformation process for better business operations and restructuring of the workforce for efficiency and effectiveness.

“While the implementation of the new National Health Insurance Act (NHIA) operational guidelines of increasing our equity from N400 million to N1billion takes full effect in the third and fourth quarter, the board has pleaded with its shareholders to raise the new capital to reposition the business financially and prevent regulatory sanctions.”

The chairman on behalf of the board appreciated its valued clients and partners for their support not forgetting the entire employees and management team for their continued devotion and commitment to the company’s success.

HCI Healthcare Ltd is a leading National Health Maintenance Organization (HMO) established in 1997 and accredited by the National Health Insurance Scheme (NHIS) to provide quality healthcare services to all categories of consumers. It works with over 1,500 hospitals nationwide to deliver superior healthcare services to its over 400,000 subscribers. It operates from its head office in Lagos and 15 other branch offices nationwide