MiCare HealthTech Holdings (MiCare), a subsidiary of Zuellig Pharma that administers medical claims, has received a $60 million investment from International Finance Corporation (IFC) and Mitsui & Co (Asia Pacific), according to an announcement.
The healthcare third-party administrator said it will use the investment to fund its expansion in key Southeast Asian markets, including Indonesia and Vietnam, and set up new regional headquarters in Singapore.
MiCare, which already has operations in Malaysia, Thailand, and the Philippines, administers and processes medical claims for over 45 insurers in Southeast Asia.
It also enables payors to manage healthcare costs, track healthcare expenditure, minimise administrative work, and identify fraud, wastage, and abuse via its AI-enabled claims adjudication system.
MiCare started in 2006 in Malaysia as a third-party administrator of medical claims, with just 200 members. The company was acquired by Zuellig Pharma Specialty Solutions in 2013.
Zuellig owns 95% of MiCare while Moses Hee, the firm’s founder and CEO, retains the remaining 5% shareholding. Following the investment, Zuellig will remain MiCare’s largest shareholder while Hee will continue to lead the company.
In a statement, IFC said its investment in MiCare fits with the World Bank Group’s COVID-19 Crisis Response Approach, 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.
IFC has an active portfolio of about $2 billion in healthcare companies in emerging markets. Through these investments, IFC said it helps private providers meet the soaring demand for health care and supports governments in their goal of reaching Universal Health Coverage by 2030.
“The transaction marks IFC’s first investment in the MCO (managed-care organisation) sector and demonstrates our commitment to supporting innovative ways of improving healthcare service delivery using digital technologies,” said Rana Karadsheh, regional industry director for Manufacturing, Agribusiness, and Services, Asia Pacific at IFC.