Japanese trader Sumitomo enters managed health care business in Malaysia
KUALA LUMPUR, NNA - Japanese trading house Sumitomo Corp. has acquired a majority stake in Malaysian managed healthcare service providers PMCare Sdn Bhd and Health Connect Holdings Sdn Bhd.
Sumitomo announced the acquisition on Thursday. It bought the shares at an undisclosed price from Ekuiti Nasional Berhad, a private equity fund owned by the Malaysian government, according to national news agency Bernama.
PMCare and Health Connect Holdings together hold the largest share in that sector in Malaysia.
Managed care, or Third Party Medical Claims Administrators (TPA), supplies management and administration of medical benefits for company employees or insured individuals on behalf of employers and insurance companies.
Sumitomo sees Malaysia’s market expanding as employers and insurers strive to hold down costs.
The company said it would tap Japanese medical and nursing services to create a platform of exchange between producers and users that brings greater sophistication to the managed care business in Asia.
The investment is part of a medium-term management plan at Sumitomo to make greater use of platform businesses and digital transformation.