NHIB PLACED UNDER EXAMINATION, MINISTRY OF HEALTH AND HUMAN SERVICES REMOVES NHIB BOARD AND CEO AND BEGINS IMPLEMENTATION OF STABLIZATION AND RESCUE PLAN

PRESS RELEASE

FROM THE MINISTRY OF HEALTH AND HUMAN SERVICES

Providenciales, Turks and Caicos Islands 7^th March 2025 – Services (MOHHS) announces the immediate placement of the National Health Insurance Board into examination in accordance with section 39 of the Public Finance Management Ordinance and removes of the Board of Directors and the Chief Executive Officer (CEO). This action is due to Governor on the advice of the Cabinet, being satisfied on reasonable grounds that the financial viability of the NHIB is at risk or poses systemic risks to the public finances.

The decision to take this necessary action follows a comprehensive review of the NHIB’s financial operations, which revealed serious concerns about the financial viability of the NHIB and the need to ensure proper financial management and systems are restored to stabilize the NHIB so that it can carry out its functions in keeping with its statutory responsibilities.

The National Health Insurance Board (NHIB) plays a vital role in ensuring access to essential healthcare services for the people of the Turks and Caicos Islands. Through its management of the National Health Insurance Plan (NHIP), the NHIB provides coverage for medical treatments, local and overseas referrals, and other critical healthcare interventions that improve the quality of life for citizens and residents.

Sound financial management and transparency are the cornerstones of any public institution, particularly one as crucial as the NHIB. Proper oversight ensures that public funds are used efficiently, services are delivered equitably, and the trust of the people is maintained. The appointment of a well-established and experienced firm to conduct the review and make recommendations on how to improve the sustainability of the organization.

What is Examination – Examination is a statutory process for statutory bodies which is similar to the process referred to as Company Administration in respect of a private company, whereby an Insolvency Practitioner is appointed as Administrator to restructure a private company, with the aim of either turning it into a profitable company to preserve value and employment.  In essence, administration seeks to either provide time for a business to restructure and become profitable.  As a statutory body, the NHIB is not a company and cannot be placed in administration.  Being placed under Examination in accordance with section 39(2) of the Public Finance Management Ordinance is the similar process for statutory bodies.

The objective of the NHIB entering into examination is to stabilise and rescue it through proper management and restructuring to help it return to financial viability in a controlled and orderly manner under the management of suitably experienced and qualified experts in financial management.

The NHIB will continue to operate and carry out its functions.  These steps are being taken to ensure that the underlying business operations are undertaken through strong financial and administrative management and where necessary, restructuring.   Section 39(2)(b)(ii) of the Public Finance Management Ordinance allows for the Governor, on the advice of the Cabinet, to remove the members of the board of the NHIB from office and appoint a new board or a person to take over the management of that statutory body.  Acting in accordance with section 39(2)(b)(ii) of the PFM, Her Excellency the Governor Dileeni Daniel Selveratnam, acting on the advice of the Cabinet –

1. a)         removed the existing Board of the NHIB and appointed an Interim Board, as follows:
2. i)          Permanent Secretary, Premier’s Office, Interim Chairperson;
3. ii)         the Deputy Governor or her representative;

iii)       the Attorney General or her representative;

1. iv)        the Permanent Secretary, Finance or her representative;
2. v)         the Permanent Secretary in the Ministry with responsibility for health or her representative;
3. vi)        the Director of Health Services (Chief Medical Officer);

vii)       the Director of the National Insurance Board;

viii)     the Interim Chief Executive Officer.

1. b)         appointed INTERPATH, an experienced professional firm as examiner in accordance with section 39(2)(i) of the PFMO.

The Hon. Minister of Health, Kyle Knowles, acting on the policy advice of the Cabinet, has today appointed Dr. Pharez George, as Interim Chief Executive Officer for the time being.

Examination is appropriate because the NHIB is financially distressed but has underlying value and serves a key purpose.  Section 39(2) of the PFMO empowers to the Governor on reasonable grounds, to place the NHIB into examination, where the financial viability of the NHIB is at risk or the NHIB poses systemic risks to the public finances.  The statutory body examination process may be a tough and intimidating one for the staff of the statutory body, but it can help provide a much-needed recovery route if conducted in the correct manner leading to greater security for the beneficiaries and staff alike.  Having the professional assistance from a qualified insolvency practitioner will help the Interim CEO and the Interim Board to understand their responsibilities and legal obligations at what a difficult time for not only the business is, but for Board and employees, suppliers, clients and all creditors owed money.

The examiner is required to immediately take over the day-to-day management of the NHIB and must put together a precise and extensive plan of action for the Government’s approval.

Commenting on the agency’s restructuring, Minister of Health and Human Services, Honourable Kyle R. Knowles stated “The Ministry of Health and Human Services remains committed to upholding the highest standards of governance and accountability. To improve confidence in the NHIB, an interim leadership team has been appointed to oversee its day-to-day operations through a stabilization and rescue plan that will result in a full review of its current structure and operations and recommendations for restructuring. This plan will focus on strengthening financial controls, enhancing operational transparency and accountability  and efficiency of operations and service delivery in the best interests of the health of the people of the Turks and Caicos Islands.

The Honourable Premier and Minister with portfolio responsibility for Finance, Honourable Charles W. Misick stated “The Government of the Turks and Caicos Islands is unwavering in its dedication to safeguarding the public’s health and trust and ensuring that the NHIB operates with integrity, efficiency, and accountability. My Ministry reassures the public that all necessary steps are being taken to reinforce financial discipline within the institution. The well-being of our people remains our top priority. We will continue to work diligently to improve confidence in the management and operations of the NHIB, ensuring that it fulfils its mandate effectively and that the healthcare needs of our citizens and residents are met without compromise.”