HCI Healthcare Limited has said it plans to raise its capital to boost health insurance service in the country. The Chairman of the Health Maintenance Organisation, Mr Adekunle Omilani, disclosed this during its 21st annual general meeting that held virtually.

The chairman decried the impact of perennial insecurity in the north and southeast regions, the rising cost of sourcing medical and other trained talents owing to trans-border migration, alleged indebtedness as of December 2021, on its 2022 financial performance.

This, he added, regrettably affected profitability and reduced its company’s shareholders’ funds from N696m in 2021 to N472.7m in 2022, a 32 per cent decrease in its equity.

He said, “In view of the above, the board and management has agreed to increase equity to over N1bn to enable the company recover its loss, set it on the pathway to profitability and meet the regulatory requirement to continue business operation, recruit top sales executives with proven track record to improve our 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 NHIA operational guidelines of increasing our equity from N400m to N1bn takes full effect in the 3rd & 4th 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 clients and partners for their support.

He also appreciated the entire employees and management team for their continued devotion and commitment to the company’s success.

The statement said, “HCI Healthcare Ltd is a leading national HMO established in 1997 and accredited by the National Health Insurance Scheme 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.”