President Gustavo Petro ordered the liquidation of all bankrupt EPS
Gustavo Petro announced that bankrupt EPS will be liquidated. Photo: Courtesy Presidency
TL;DR
- President Petro orders the liquidation of all bankrupt EPS following the shelving of the health reform in Congress.
- The government will not transfer the accumulated debt of private EPS to the state, citing risks to fiscal stability.
- The health reform will be reintroduced on July 20th during a new legislative session.
- Nueva EPS, partially state-owned, will receive payments from the national government to improve its financial situation and exit state intervention.
- Plans for Nueva EPS include implementing medication auctions, which current interveners have reportedly not pursued.
- Petro requested investigations into potential irregularities concerning the appointment of interveners in intervened EPS.
- The government's previous attempt to have EPS function as health managers instead of financial intermediaries was contingent on reform approval.
- Petro stated that while he wanted to save EPS under a new model, their failure to pass the reform leaves liquidation as the remaining option under current law.
- The President attributed the insolvency of several EPS to accumulated debt and a lack of technical reserves, not a lack of government funding.