Entering the Managed Care Business in Vietnam－ Invests in Insmart, the largest TPA service company in Vietnam －

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) has invested in Insmart Joint Stock Company (hereinafter “Insmart”), the largest TPA service company in Vietnam, to enter the managed care business (See “Note”) in that country.

TPA service companies specialize in the management and administration of medical benefits for corporate employees or individuals insured through insurance companies. In addition, their service extends to screening medical care billing details ensuring that treatment/prescriptions and hospital stays/visits are appropriate, and providing appropriate information on medical institutions. In recent years, with medical demand brought on by rapid population and economic growth, there is a growing need for TPA service companies that keep medical costs down and make more advanced healthcare services available.

With a market share upwards of 60%, Insmart is the largest player in the Vietnamese managed care industry, which continues to grow on the back of the country’s growing healthcare market and the needs of corporations and private-sector medical insurance companies to keep their medical costs down. The company leverages its strengths, such as their comprehensive IT systems, robust network with medical institutions both locally and overseas, and the provision of high-quality services through 24-hour call centers, to support Vietnam’s healthcare system with a focus on the private-sector medical insurance market, which is currently growing at a rate of 20% annually.

In 2019, Sumitomo Corporation invested in PM Care and Health Connect Holdings, both major TPA service companies in Malaysia, and has accumulated expertise in the managed care business. Through the investment in Insmart, we aim to advance the managed care business by promoting digital transformation (hereinafter “DX”), which includes streamlining operations on processing medical bills and introducing online medical care and pharmaceutical services.

In its medium-term management plan "SHIFT 2023," Sumitomo Corporation lists "healthcare" as one of its next-generation growth strategy themes. We have already worked in a wide variety of healthcare businesses such as management of drugstore chains with prescription departments, organization of the community-based integrated care system, and drug discovery support. Going forward, as a service facilitator between companies/private medical insurance companies and medical institutions, we are committed to providing high-quality and efficient healthcare services around the world. In addition , we aim to contribute toward improving standards of living by building a sustainable healthcare system with a view to enter into peripheral businesses such as drug distribution, medical data utilization, and DX promotion in harmony with medical institutions.

(Note) Managed care
Managed care is a system for providing medical care that has spread to countries with relatively undeveloped public healthcare systems. Under this scheme, healthcare services are provided through a tripartite collaboration among companies/private insurance companies, TPA services, and medical providers.

＜Reference information＞
■Insmart Company Overview

■Managed Care Business Overview

Sumitomo Corporation’s Material Issues

Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to the following material Issues.

Achieving Harmony with the Global Environment

To realize recycling-oriented society and mitigate climate change, we are working to establish frameworks for the efficient use of resources and stable supply of renewable energy. In doing so, we will achieve growth in harmony with the global environment.

Contributing to the Development of Local Communities and Industries

We steadily procure and provide goods and services to meet the needs of people in various countries and regions and contribute to developing industrial platforms. Through these means, we will create a virtuous cycle in which we can grow and develop together with local communities.

Establishing a Foundation for Comfortable and Enriching Lifestyles

We strive to realize more convenient and comfortable lifestyles by providing goods and services for daily use while also responding to needs for high-quality lifestyles in order to support the physical and mental health of people around the world.

Providing Diverse “Accessibility”

We provide diverse accessibility to open up the possibility of creating new value. To this end, we will improve mobility for safe and efficient flow of people and goods, and expand the network connecting information and finance.

Developing Human Resources and Promoting Diversity

In order to create new value and innovation by allowing our diverse personnel to fully exercise their abilities in a variety of fields, we will promote the development and empowerment of human resources, which represent our most important management resources.

Enhancing Governance

We will enhance our ability to draft and implement strategies for achieving sustainable growth and to provide appropriate supervision of these strategies, all while maintaining transparency. In this manner, we will improve management efficiency and maintain sound management.