Colombia’s Grupo SURA Subsidiary to Disassemble Health Business

Colombian conglomerate Grupo Sura’s subsidiary, EPS Sura, has made a bold move by seeking regulatory permission to dismantle its health business, adding to the challenges faced by Colombia’s healthcare system. This decision comes in the wake of the government’s takeover of two major insurers, Sanitas and Nueva EPS, due to alleged failures in providing adequate care to their 16 million clients.

President Gustavo Petro’s efforts to reform the healthcare system have faced obstacles, with a senate committee rejecting a proposed health reform in April. Petro expressed concerns about the domino effect of bankrupting health service providers following the rejection of the reform.

EPS Sura reported significant net losses, totaling 360 billion pesos, from 2022 to 2023, leading to the depletion of the company’s assets. The firm emphasized the necessity of adopting timely measures to prevent further deterioration in the current financial conditions of the healthcare system.

Colombia’s health ministry acknowledged the structural failures in the country’s health system and highlighted the need for reform in response to Sura’s request. A viability study will be conducted before health regulators make a decision on the dismantling request.

President Petro plans to reintroduce the healthcare reform in the upcoming session of Congress in July, with the possibility of EPS Sura transitioning from a healthcare administrator to a direct healthcare provider. Additionally, Petro’s administration is advocating for pension, labor, and education reforms to address various challenges in Colombia’s social and economic sectors.