Colombia's Health Crisis: Grupo Sura's Exit & Government Takeover

Grupo Sura, a subsidiary of a Colombian conglomerate, seeks regulatory approval to dismantle its health business amidst the nation’s healthcare crisis. This follows the government's takeover of major insurers Sanitas and Nueva EPS due to inadequate care. President Petro's health reform faced a setback in the Senate.

A subsidiary of Colombian conglomerate Grupo Sura said on Tuesday it has asked for regulator permission to dismantle its health business, in the latest blow to Colombia's healthcare system.

The government of President Gustavo Petro last month took control of two major insurers - Sanitas and Nueva EPS, which combined had some 16 million clients - alleging they failed to provide adequate care. A senate committee rejected a health reform proposed in April by Petro, who has struggled to push new laws for his cornerstone promises through the Andean country's Congress.

"The senate sank the proposal, and as I've said for more than a year, by sinking the reform there's the domino effect of bankrupting health service providers," Petro said in a post on X. The SURA subsidiary, EPS Sura, reported net losses of 360 billion pesos ($92.3 million) from 2022 to 2023, depleting the company's assets.

"Considering the current financial conditions of the healthcare system, it is necessary and responsible to adopt timely measures to avoid further deterioration," the firm said in a statement. EPS Sura offers healthcare to some 5.3 million clients. The decision will not affect Grupo SURA's solvency or liquidity, the statement added.

Petro has said he will present the reform once Congress enters its new session in July. Petro's administration is also pushing a pension reform and labor and education reforms.

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