Carehealth faces possible liquidation

MANILA, Philippines —  Health maintenance organization (HMO) provider Carehealth Plus Systems International Inc. may be liquidated over the next few months after the government placed it under receivership.

In its latest notice, the Insurance Commission placed Carehealth under receivership effective last month.

Based on IC evaluation, the HMO firm is suffering from liquidity problems which resulted in the continuous delay and difficulty of paying its obligations.

A notice of stay of order was also issued to allow the firm to consolidate, preserve and protect its assets for the benefit of its members and creditors while undergoing receivership proceedings.

IC also issued a directive to set the rules and parameters in the payment of the pending obligations of Carehealth while undergoing receivership proceedings.

Nonetheless, all actions or proceedings for the enforcement of all claims against the company are suspended.

Carehealth is prohibited from selling, encumbering, transferring or disposing in any manner any of its properties, as well from making any payment of its liabilities.

It is also directed to pay in full all approved administrative expenses incurred after the date of issuance of the stay order.

The duration of the stay order shall be temporary and may be revoked as soon as the firm is restored to a state of liquidity with sufficient assets to satisfy the claims of its policyholders.

Last April, the IC placed Carehealth under conservatorship, a status that will allow the regulator to be involved in the management until the viability of the HMO is restored.

Data from IC showed that Carehealth recorded a net income of P4.25 million in 2021 while its health care benefits and claims reached P95.37 million.

This was the last data available on IC as the HMO provider did not submit any financial statement in 2022 and 2023.

It was in 2015 when Carehealth secured its license from the IC and the Securities and Exchange Commission.