FCTA Targets Defaulting HMOs Over Unpaid Healthcare Funds

By Esther Ososanya

The Federal Capital Territory Administration (FCTA) has vowed to sanction Health Maintenance Organisations (HMOs) under the FCT Health Insurance Scheme (FHIS) that fail to remit payments to healthcare providers.

This follows persistent complaints from hospitals despite the government’s clearance of billions in arrears.

Mr Lere Olayinka, Senior Special Assistant on Public Communications and Social Media to the FCT Minister, disclosed this in a statement issued on Tuesday, July 29, 2025.

To improve healthcare access, FCT Minister Nyesom Wike recently approved and released over ₦4 billion to settle capitation and service fees owed from 2022 to 2024. The payments were made across 2024 and 2025 to ease financial pressure on hospitals under the FHIS.

Healthcare providers had long complained of delayed payments from HMOs, leading to service disruptions. With the funds now released, the government expects timely reimbursement to facilities managing enrollees.

FCTA Rejects HMOs’ Excuses

Some HMOs have allegedly withheld payments, claiming they lack the bank account details of hospitals. The FCTA has rejected these excuses as unacceptable.

“The excuse of unavailable hospital bank details is not acceptable to the government,” Olayinka stated. He added that the administration would begin strict monitoring and apply appropriate sanctions to non-compliant organisations.

The FHIS, a social health insurance programme, aims to provide affordable healthcare to all FCT residents. Vulnerable groups, including pregnant women, children under five, and staff of FCTA and Area Councils, receive free coverage. Others can join the scheme at a subsidised annual premium of ₦22,500.

Recent reforms have expanded free enrolment to thousands of indigent residents. Many now access basic health services through the scheme at no cost.

To improve access in rural areas, the FHIS has accredited 100 Primary Health Care (PHC) facilities across all six Area Councils. The administration is also increasing the number of PHCs under the scheme to bring care closer to underserved communities.

In addition, the FCTA has reviewed and raised capitation rates paid to healthcare providers. This move is expected to enhance service delivery and ensure better commitment from hospitals.

Free Maternity Care Still Guaranteed

Pregnant women registered through the Basic Health Care Provision Fund (BHCPF) will continue to enjoy free antenatal services, drugs, lab tests, delivery, including caesarean sections, and emergency care. These services remain available across all 14 general hospitals in the FCT.

READ ALSO: FCTA Made N650m from Renovated ICC in 3 Weeks, Wike

The administration reaffirmed that these services are central to its maternal and child health goals and will remain completely free.

The FCTA emphasised its renewed commitment to overhauling the health insurance system. With significant funds now injected and increased oversight, the administration is determined to ensure accountability.

“All hands must be on deck to achieve universal healthcare coverage. Defaulting HMOs and negligent healthcare providers will no longer be tolerated,” the statement concluded.

 

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Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.

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