HK Stock Market Move | HYGEIA HEALTH (06078) rose more than 4% during the day. Institutions point out that the establishment of a prepayment system for medical insurance funds will help alleviate the pressure on hospitals to collect payments.

HYGEIA HEALTH (06078) rose more than 4% intra-day, with a 4.04% increase at the time of writing, trading at 18.04 Hong Kong dollars with a turnover of 79.46 million Hong Kong dollars. BOCOM INTL released a research report stating that the National Medical Insurance Bureau and the Department of Finance jointly issued a document to support regions with certain conditions to further improve the management of prepayment funds. By prepaying part of the medical insurance fund, it helps designated medical institutions to relieve the pressure of medical expenses. The regions implementing prepayment will generally use the average monthly medical insurance fund expenditure in the past 1-3 years as a basis to reasonably determine the scale of prepayment. This scale will be adjusted based on the comprehensive evaluation and credit evaluation of designated medical institutions annually, and the prepayment amount should be around one month. The bank believes that implementing a one-month prepayment for medical insurance is expected to alleviate the pressure of medical insurance designated medical institutions and commercial distribution companies in terms of upfront funding, as well as the bad debt pressure caused by medical insurance arrears in payment/reimbursement funds. Among the companies covered by the bank, HYGEIA HEALTH may face some pressure in receiving medical insurance payments in 1H24. However, apart from the Heze region where prepayment conditions may not be met, other regions have good medical insurance income and balance situations and are expected to benefit from the one-month prepayment, thereby improving cash flow and bad debt situations.