HK Stock Market Move | HYGEIA HEALTH (06078) rose more than 6%, with the introduction of the medical insurance prepayment system, the company's receivables pressure is expected to be alleviated.

HYGEIA HEALTH (06078) rose more than 6%, reaching a 6.05% increase at the time of drafting, at HKD 18.22, with a trading volume of HKD 140 million. On the news front, the National Medical Insurance Administration and the Office of the Ministry of Finance recently jointly issued a document to support certain regions in further improving the management of advance payments, helping designated medical institutions alleviate the pressure of upfront medical expenses by pre-paying a portion of the medical insurance funds. The regions implementing the advance payment system will generally use the average monthly expenditure of medical insurance funds in the past 1-3 years as a basis to determine the appropriate scale of advance payments, adjusting them based on the comprehensive evaluation and credit rating of the designated medical institutions, with the advance amount being around 1 month. BOCOM INTL pointed out that the implementation of a one-month advance payment for medical insurance is expected to alleviate the pressure on medical insurance designated medical institutions and commercial distribution companies, as well as the bad debt pressure caused by delayed medical insurance payments/reimbursements. HYGEIA HEALTH faced some pressure on medical insurance payments in the first half of the year. Among the medical institutions it operates, except for the Heze region which may not meet the conditions for implementing advance payments, other regions have good medical insurance revenue and balance situations and are expected to benefit from around one month of advance payments, thereby improving cash flow and bad debt situation.