The Financial Regulatory Authority (FRA) in Egypt has issued new guidelines to regulate the operations of healthcare management administration companies (HMAs). This move is part of the broader framework to streamline and control the healthcare sector in the country.
The newly issued rules set the framework for the establishment, licensing, and regulation of HMAs. According to the new regulations, the FRA has been granted exclusive authority over the licensing, regulation, and oversight of these companies. Therefore, no company is allowed to perform healthcare management activities without first obtaining a license from the FRA and being officially registered with the authority.
Under the new laws, healthcare management administration companies must be established as Egyptian joint-stock companies. Their sole purpose must be limited to managing healthcare programs, and they must meet a minimum paid-up capital requirement of EGP 20 million, which is approximately $422,000.
In a significant move, the new rules also prevent employees of (re)insurance companies from becoming shareholders or part of the management teams of HMAs. Furthermore, shareholders of HMAs must disclose any relations up to the second degree with individuals working in insurance or reinsurance companies.
The new regulatory framework follows the introduction of the Unified Insurance Law, passed in 2024. This law aims to standardize and modernize insurance regulations in Egypt, including healthcare management.
For companies that were established before the enactment of the Unified Insurance Law, a temporary license must be obtained. These companies must ensure they comply with the new regulations by July 10, 2026, or face potential penalties.