September 19, 2024 | 12:00am
MANILA, Philippines — The Insurance Commission (IC) has placed health maintenance organization (HMO) Stotsenberg Healthcare Systems Inc. (SHSI) under conservatorship amid its inability to address requirements from the government.
In a notice, IC commissioner Reynaldo Regalado informed the public that SHSI is being placed under conservatorship, a status that will allow the regulator to be involved in the management until the viability of the HMO is restored.
The IC said SHSI is unable to comply with the requirements and orders under the minimum capitalization and financial capacity requirement of HMOs.
As such, SHSI is ordered to cease and desist from taking HMO business of any kind.
The IC, however, did not specify which financial capacity requirement SHSI has failed to address.
Under the law, the IC may put an HMO under conservatorship if it finds that it is in a state of continuing inability or unwillingness to comply with its obligations to policyholders.
The latest available IC data on SHSI is as of end-June 2023.
SHSI’s assets stood at P11.76 million and its capital stock was at P10 million, which is the minimum requirement.
However, it did not provide any data on revenues, expenses, health care benefits and claims and net income.
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