Medi Assist, India’s largest health insurance Third Party Administrator (TPA) announced that they have signed a definitive agreement to acquire a 100% stake in Medvantage Insurance TPA Pvt. Ltd. (formerly UnitedHealthcare Parekh Insurance TPA). Medi Assist expects to fund the acquisition with existing cash from its balance sheet. The transaction was approved by the Board of Directors at each of the respective companies and is subject to receipt of regulatory approval and satisfaction of other customary closing conditions.
With the combination of two of the best-known names in the TPA industry, Medi Assist will now service over INR 10k crores of health insurance premiums as part of its Corporate portfolio and also command a market share of close to 30% in this segment. This further strengthens Medi Assist’s focus on addressing the need for digital transformation of the industry and enabling a paperless environment, fast-tracking issuances (enabling rapid product launches) while providing a national footprint and access to insurer-backed healthcare services.
Medi Assist has been a pioneer in this space having built a pan-India network of hospitals, developed technologies that have significantly improved claims settlement cycles, used AI/ML in claims automation/fraud prevention, and deployed mobile applications that simplify policyholder access and experience. Medvantage is a specialized corporate-focused TPA that was operating as a partnership with UnitedHealth Group (US multinational managed healthcare and insurance conglomerate ranked 5th on the 2022 Fortune 500 list) until Nimish R. Parekh acquired UnitedHealth Group’s minority shareholding in Medvantage recently.
CEO of Medi Assist, Satish Gidugu said, “The digital-first service focus at Medi Assist has been the cornerstone of our growth story. We are committed to creating value for all our stakeholders and the acquisition is a great strategic and cultural fit.”
Medi Assist has in the past acquired Dedicated Healthcare Services (DHS) TPA in 2016 and Medicare TPA in 2018. With Medvantage, Medi Assist adds more clients to its existing portfolio of over 9,000 corporate clients and will bring its industry-leading technology platform to Medvantage’s customers. This will also provide Medvantage customers access to Medi Assist’s cashless hospital network, OPD services, and a slew of innovative offerings like navigator (for out-of-pocket cost estimation, financing etc.) which are in the pipeline.
Chairman of Medvantage, Nimish R. Parekh said, "Medvantage, one of the first and only specialized corporates focused on TPA, and Medi Assist share similar values, expertise, capabilities, and vision. This acquisition ensures that Medi Assist is positioned to deliver best-in-class service to Medvantage’s corporate customers and to ensure that we remain laser focused on a member-first agenda.”
Industry Veteran, Founder of Medvantage and Past President of Federation of Family Physicians' Associations of India, Dr. Ramnik Parekh, said “Having seen the industry since its inception, the role of a TPA is even more pronounced today. I wish Medi Assist all the very best as it transforms the health insurance landscape in India.”
Over the past years, and especially over the course of the Covid pandemic, the role of a TPA in India has become even more relevant with Policyholders and Insurers demanding best-in-class service, robust technology platforms that enable access to timely medical care across networks of hospitals, frictionless claim submission and prompt settlements by insurers.