Singapore, May 27, 2021— A new investment by the International Finance Corporation (IFC) will help bring more innovative and cost-efficient medical-administration services to underserved markets in Southeast Asia, lowering healthcare costs and improving health inclusion across the region.
IFC and Mitsui & Co. (Asia Pacific) Pte. Ltd. (Mitsui), a subsidiary of Mitsui & Co, are investing around US$60 million in MiCare HealthTEC Holdings Pte Ltd (MiCare), a subsidiary of Zuellig Pharma and a leading medical-claims administrator in Southeast Asia.
MiCare administers, processes, and manages medical claims on behalf of insurance companies and self-insured corporate clients. The company has more than 13 million members in Malaysia, Thailand, and the Philippines and manages and administers medical claims for over 45 insurers in Southeast Asia, serving more than 6,500 corporate clients in over 5,000 hospitals, clinics, and pharmacies. MiCare also builds applications linking key players in the healthcare sector such as doctors, patients, hospitals, clinics, and pharmacies, further facilitating the seamless and efficient management of medical claims.
MiCare's technology has enabled the company to achieve and sustain significant cost savings for new clients by improving fraud detection, reducing billing errors, and managing overtreatment.
The strategic investment will be used to fund MiCare's expansion in key Southeast Asian markets including Indonesia and Vietnam. The company will also set up a new regional headquarters in Singapore following the investment.
Zuellig Pharma, one of the largest healthcare services groups in Asia, will remain as MiCare's largest shareholder. MiCare's Chief Executive Officer Moses Hee will continue to lead the company.
Health insurance is gaining traction in low- and middle-income countries as a means of improving the use of healthcare and protecting households against impoverishment from out-of-pocket costs. Out-of-pocket spending in Indonesia and Vietnam stood at 34.9 and 44.9 percent of health expenditure in 2018, respectively, according to the World Health Organization, reflecting limited health-insurance coverage in these countries. To manage their member bases more effectively and coordinate care through functional health systems, insurers need modern operating systems with complimentary processes and technology. This makes managed-care organizations (MCOs) such as MiCare critical to addressing gaps in access to and the affordability of quality healthcare.
"We have come a long way since 2006, when MiCare started in Malaysia as a third-party administrator of medical claims with just 200 members," said Mr. Hee. "As we look forward to embarking on MiCare's next phase of growth, we are very excited to welcome IFC and Mitsui as strategic partners to the MiCare family. This investment will help us continue enhancing our client offerings by strengthening our digital capabilities and enabling us to introduce innovative solutions through partnerships with healthcare ecosystem players such as pharma and telemedicine companies. This is in line with our mission to help manage escalating medical costs and improve healthcare affordability and outcomes for patients."
"MiCare has always been a key pillar of growth for Zuellig Pharma and this expansion is a key step towards our goal in becoming a fully integrated healthcare services business that provides value by acting as a connector within the healthcare ecosystem," said John Graham, CEO of Zuellig Pharma. "This collaboration also signals an acceleration of growth in an area of increasing importance to all stakeholders and broadens our ability to fulfil our mission of making healthcare more accessible in the region."
"Our investment in MiCare will help bring robust medical claims administration processes and advanced proprietary digital tools to underserved markets in Southeast Asia, supporting insurers and providers with the technological tools needed for more efficient and effective healthcare delivery," said Rana Karadsheh, Regional Industry Director for Manufacturing, Agribusiness and Services, Asia Pacific at IFC. "The transaction marks IFC's first investment in the MCO sector and demonstrates our commitment to supporting innovative ways of improving healthcare service delivery using digital technologies. We look forward to supporting the company's growth and development in the region."
"Health and wellness is a key part of our growth strategy and we aim to build a high-quality wellness service platform to meet growing demand in Asia" said Koji Nagatomi, Chief Executive of Mitsui & Co. (Asia Pacific). "Our investment in MiCare complements Mitsui's portfolio of healthcare businesses in this region, and represents our commitment to supporting the development of high-quality, cost-efficient and sustainable healthcare systems."
IFC's investment fits with the World Bank Group's COVID-19 Crisis Response Approach paper, which highlights the need to promote a resilient recovery from the pandemic. Measures include ensuring health-service delivery through the expansion and reorganization of care, introducing new service delivery models, and drawing on private-sector capacity to improve access to essential health services.
About MiCare
Headquartered in Singapore, MiCare Healthtec Holdings Pte Ltd ("MiCare"), a subsidiary of Zuellig Pharma, is a leading managed care organization with over 15 years of experience in medical claims adjudication, benefits management and providing call centre services for payors (including insurers and self-insured corporates), connecting its stakeholders via its state-of-the-art digital platform. MiCare also provides wellness and disease management programmes including partnering with pharma companies on various chronic disease management programmes, providing occupational health services, digital solutions, telemedicine, and data analytics services. Through its comprehensive suite of services, MiCare enables payors to manage healthcare costs, track healthcare expenditures, minimize administrative work, identify fraud, wastage, and abuse via its AI-enabled claims adjudication system while ensuring the provision of effective, high-quality care.
MiCare manages and administers medical claims for over 45 insurers in the region, serving more than 6,500 corporate clients in over 5,000 hospitals, clinics and pharmacies. To date, the company has helped administer and manage medical claims records for more than 13 million members.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
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