Colombia healthcare providers used $2.5 bln of funds for other activities, comptroller says

Bogota: Private sector health providers in Colombia used 9.3 trillion pesos ($2.47 billion) of mostly government funds for activities unrelated to providing care to policy holders, the country's comptroller general said.

From 2019 to 2021, 18 healthcare providers, known as EPS, operating in the country put the funds towards shareholder dividends, settling extraordinary costs or paying fines, according to a preliminary report from the comptroller published on Monday.

The report followed a statement from Colombia's health ministry that said it would start disbursing finances directly to hospitals and clinics instead of via the EPS, adding the measure would speed up payments and increase efficiency.

"Accounting records unrelated to the nature and concepts of health expenses provided for by law were seen," the report said.

"There is evidence of alleged damage to the state's assets, due to the fact that part of the resources (...) were allocated to activities, goods and services other than health service care for their members," it added.

Last week, a Senate committee rejected a health reform proposed by the government of leftist President Gustavo Petro that looked to strip power from the EPS providers and expand access to healthcare.

Despite the setback, Petro began to implement changes to the health system, including government interventions in some EPS providers, which detractors said represented a de facto implementation of the rejected reform.

(Reporting by Luis Jaime Acosta; Writing by Oliver Griffin; Editing by Jamie Freed)