International Finance Corporation (IFC) and Mitsui & Co. (Asia Pacific) have agreed to invest US$60 million in MiCare HealthTEC Holdings, a medical claims administrator and subsidiary of Zuellig Pharma. Zuellig Pharma will remain as MiCare’s largest shareholder and MiCare will continue to be led by its founder and chief executive officer Moses Hee.
The strategic investment will be used to fund MiCare’s expansion in key Southeast Asian markets, including Indonesia and Vietnam, and set up a new regional headquarters in Singapore. Baker McKenzie acted as legal adviser for the deal.
Singapore-based MiCare is a managed care organization (MCO) that administers, processes and manages medical claims of policyholders and members on behalf of insurance companies and self-insured corporate clients.
The company also builds applications linking key players in the healthcare sector such as doctors, patients, hospitals, clinics and pharmacies, to facilitate the efficient management of medical claims. MiCare has more than 13 million members in three countries – Malaysia, Thailand and the Philippines – and is looking to continue to grow and expand in the region.
Hee says: “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. Thanks to the perseverance and single-minded focus of a committed team, today our member base has grown to more than 13 million in three countries.
“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. We will also expand into new geographies in ASEAN to reach underserved communities such as in Indonesia and Vietnam to make healthcare more accessible.”
MiCare focuses on three pain points in addressing rising healthcare costs – fraud, waste and abuse. The company has vast experience in managing and adjudicating medical claims using a robust digital platform empowered by an artificial intelligence-enabled fraud detection engine and predictive analytical tools. It 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.
Rana Karadsheh, IFC’s regional industry director for manufacturing, agribusiness and services, Asia-Pacific, notes: “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.”
MiCare currently processes about US$400 million in medical claims annually. It 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.