Parekh Health brands hospital network as HealthConnect
Soumya Viswanathan - Mumbai

“Benefits like day care, emergency care and reconstructive surgery are the variations that can be brought into Mediclaim”

Nimish Parekh, CEO, Parekh Health believes that having a strong network of hospitals is very important for a TPA. And to build and popularise his network of 325 multispecialty hospitals in 104 cities, 200 diagnostic centres in 36 cities and around 100 GPs, Parekh Health is branding its network as HealthConnect. And he has ambitious plans to strengthen the brand equity of HealthConnect. Talks are on with credit cards, equipment companies and others to give various discounts to providers. Healthconnect will also add value to the provider network by offering Hospital Information System through internet on a pay per use basis. This is especially aimed at small nursing homes that cannot afford to invest heavily in technology.

“Network is a critical component of TPA business and needs a good amount of investment. If the TPA doesn’t have a contract with hospitals, there are greater chances of fraud.” And Parekh has been successful in giving long term business to hospitals. “Besides, our network gives negotiated discounts. We work closely with the provider. If he thinks I can give business, he gives discount. That is how we could help bring down the loss ratio of Mediclaim. The loss ratio of 60 per cent we are projecting is enviable.”

HealthConnect is just one of the business models that is currently on Parekh’s hands and mind. United Healthcare, which has a 26 per cent stake in Parekh Health has asked Parekh to set up a third company, which will be 100 per cent subsidiary of United Health to carry out back office work and claims processing for insurance companies in the US. “We are in the process of setting up a large facility in Chennai,” Parekh says excitedly. The company will also go live with customer relationship management (CRM) software, a platform with web-based internet tools in May.

The company is also busy in designing a mediclaim type insurance product for a private insurance company. Benefits like day care, emergency care and reconstructive surgery are the variations that can be brought in, he says. Though Parekh has designed products for corporates, for an insurer, it is different, he says. In case of a product for an employer, data on age group and profile was available. But a regular product has to appeal to many market segments. Parekh’s success mantra also includes care co-ordination and sound investment in technology. He says, “There are two aspects, viz. administration and customer service. Administration must be extremely cost effective so that transaction costs are bare minimum. Customer service encompasses enrollment, claims administration (must be accurate for high degree of fraud control) and call centres. And the only way to keep high volume transactions in check is by using the latest in technology.” Parekh has invested more than a million dollars in technology and says that without wherewithal to invest heavily, one can never survive.

The TPA-provider relationship has never been really amicable. “In other countries there is history of strong arm tactics used by TPAs. Hence, providers here are also wary. But our policy is commensurate with United Health’s which is — doctor is the best to decide treatment.”

Parekh Health, an associate of United Healthcare India was formed because foreign investment was restricted to 26 per cent in United Healthcare India. United Health Group’s stake in the company has opened doors to capital and knowledge. “I have the ammunition to go out and capture the market.” And Parekh is definitely making the best and most of it.