MEDI.L Regulatory News (MEDI)

6 Jul 2009 07:00

6 July 2009

MEDILINK-GLOBAL UK LIMITED

Trading Update - Contract gains

Medilink-Global UK Limited ("MediLink"), the electronic health card network service provider, is pleased to announce the following contract gains with the joint venture AVIVA-COFCO in China, Qualitas Medical Group and AXA-Affin in Malaysia.

Background

MediLink has launched three healthcare related products all or in part of which are included in the contract gains mentioned in this release. The products are Emergency Medical Assistance Service Facilitation ("EMA"), Medical Second Opinion ("MSO"), and Medical Tourism / Cross Border Care Facilitation. These will be packaged as value-added services to its core Third Party Administrator ("TPA") services or as stand-alone products. The contract and strategic alliance wins in this release are set to provide the Company with a platform to generate future sales. 

Contract gains

AVIVA-COFCO 

MediLink's wholly owned subsidiary MediLink (Beijing) TPA Services Co. Ltd ("Medilink Beijing") has entered into a contract to provide Third Party Administration ("TPA") services to AVIVA-COFCO Life Insurance Co. Ltd. ("AVIVA-COFCO"). AVIVA-COFCO is a joint venture between AVIVA, the world's fifth-largest insurance provider and COFCO Limited, the largest oil and food importer and exporter in China, and has operations in over 40 cities in China. The contract will run for 3 years after which it is subject to automatic renewal for a further 3 years. AVIVA-COFCO will promote MediLink's TPA services through its agencies, brokers and banks.

MediLink Beijing is contracted to provide a comprehensive package of TPA services using an Electronic Claims Clearing System, MediLink's bespoke Claim Application System, and its exclusive Electronic Data Capture healthcare provider network, with services that include cashless hospitalisation, direct billing medical claim processing amongst other services to enhance efficiencies.

The contract also includes the provisioning of MediLink's MSO service which enables members to seek a second opinion from any of the world leading Medical Centres of Excellence around the world. MSO acts as a very cost effective and convenient way for the insured to seek a second opinion.

Licensing of MediLink's Claims Technology to Qualitas Medical Group

MGA has also entered into a Technology License Agreement with Qualitas Medical Group ("Qualitas"), the largest well-integrated network of primary care and out-patient service provider in Malaysia. Under the agreement all Qualitas Clinics will use MediLink's entire suite of web-based Claims Application System to control utilisation, verify eligibility and process claims for employers' funded Out-Patient Healthcare Plans which are managed by Qualitas. This agreement allows Medilink to earn a transaction fee for clinic visitation and opens up a significant market channel and revenue stream for the company. 

Maiden strategic collaboration

MediLink's subsidiary, Medilink-Global Asia Pte Ltd (MGA) has signed its first strategic collaboration agreement with a medical centre of excellence in Malaysia, Sime Darby Medical Centre, to promote and facilitate Medical Tourism and Cross-border healthcare services. This collaboration represents the first step taken by the MGA in launching itself as a global facilitator of cross-border care.

Service agreement with AXA-Affin Malaysia 

MediLink's wholly owned subsidiary in Malaysia, Datalink Healthcard Network Sdn Bhd, has secured its first EMA facilitation contract with AXA Affin General Insurance Berhad ("AXA Affin"), one of the major insurers in Malaysia. EMA services include a 24 hour medical help-line, cross border medical care facilitation and arrangement, medical referral, counselling, monitoring, evacuation, and repatriation. 

Shia Kok Fat, CEO of MediLink, commented: "We are extremely pleased to have won the contract with AVIVA. This is proof our expansion strategy in China is working and this contract will greatly enhance MediLink's standing in China and so help drive further growth. MSO is an important part of the fast growing cross border medical industry of which MediLink is aiming to be a leader in helping facilitate and in which we see great potential for growth. We feel our added value initiatives will help grow the Group's revenue stream by enhancing our core TPA services. 

We now have 700 healthcare providers on our network which means we are well placed to meet our forecast to grow from 164 to 1,000 by the end of 2009." 

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