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FCTA Cracks the Whip: Defaulting HMOs Face Sanctions for Starving Clinics of Funds
The Federal Capital Territory Administration (FCTA) has issued a stern warning to Health Maintenance Organisations (HMOs) under the FCT Health Insurance Scheme (FHIS) that fail to promptly remit payments to healthcare providers.....KINDLY READ THE FULL STORY HERE▶
The warning was contained in a statement released on Tuesday by the Senior Special Assistant to the FCT Minister on Public Communications and Social Media, Lere Olayinka. He stated that the FCTA would impose appropriate sanctions on any HMO found defaulting on their financial obligations to hospitals and clinics under the scheme.
According to Olayinka, the FHIS is a social health insurance initiative designed to ensure FCT residents have access to quality, affordable, and equitable healthcare, offering financial protection in times of medical need.
While the programme is free for FCTA and Area Council staff, as well as vulnerable groups such as pregnant women, other residents are required to pay an annual enrolment fee of N22,500.
Olayinka revealed that the FCT Minister, Nyesom Wike, had approved and disbursed N4 billion in backlog payments for capitation and service fees covering the years 2022 to 2024. Despite this financial intervention, some healthcare providers have lodged complaints against certain HMOs for failing to remit due payments, citing missing hospital bank account details—a justification the FCTA dismissed as unacceptable.
“To enhance the quality of services delivered to FHIS enrollees, the FCTA cleared all outstanding payments amounting to N4 billion between last year and this year,” the statement read. “However, reports of non-payment by some HMOs under flimsy excuses will not be tolerated. HMOs must comply with timely remittances, and healthcare providers must also remain committed to their responsibilities. Defaulters will face appropriate sanctions.”
The SSA also outlined several achievements under the FHIS in the past year. These include the complete clearance of payment backlogs, improved disbursement timelines to HMOs, increased capitation rates for providers, and the accreditation of 100 Primary Healthcare Centres (PHCs) across the territory to expand access.
He further noted that pregnant women registered through the Basic Health Care Provision Fund (BHCPF) at PHCs in all six Area Councils will continue to receive comprehensive free maternal healthcare services. These include health education, consultations, treatment, antenatal medications, laboratory tests, and delivery.
In addition, referrals for secondary care—such as caesarean sections, blood transfusions, and treatment of serious obstetric complications like eclampsia—are fully covered at all 14 General Hospitals in the FCT under the BHCPF.
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