Sep. 06, 2021
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.
■Insmart Company Overview
|Official name||：||Insmart Joint Stock Company.|
|Location||：||Head Office (Hanoi) and and Branch Office (HCMC) in Vietnam|
|Number of employees||：||Approximately 300 (as of the end of December 2020)
■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.