MagX Health Secures Strategic Investment from HSBC in Series C+ Round to Advance Inclusive Healthcare Ecosystem

Inclusive Healthcare Sector Welcomes Another Major Funding Announcement

VCBeat has learned that MediTrust Health, a leading inclusive and innovative healthcare and protection service platform in China, officially announced the introduction of HSBC as a strategic investor. HSBC is one of the largest banking and financial services institutions globally.

This marks the sixth consecutive financing round for MediTrust Health in the more than five years since its establishment. To date, its strategic shareholders include Shanghai Pharmaceuticals, China Life Reinsurance Company, the Shanghai Biomedical Industry Fund, and several other top-tier domestic capital firms. The participation of HSBC, a renowned international financial institution, further expands the prospects for MediTrust Health’s future development.

Notably, as a new inclusive gateway to public health in urban communities, MediTrust Health has launched diverse inclusive health insurance products along with various medical and healthcare benefits and services in recent years, establishing a virtuous cycle among industry payers, product and service providers, and end-users.

Guided by policy, MediTrust Health aims to promote inclusive healthcare, fill market gaps, and is gradually developing into China’s largest platform for inclusive healthcare services and coverage through its unique business model.

Tracing the growth trajectory of MediTrust Health, since its establishment in 2017, the company has consistently driven its development through innovation. From pioneering innovative medical payment models to becoming a leading inclusive healthcare service and protection platform in China, every step taken by MediTrust Health has been marked by continuous innovation and deepening expertise.

Specifically,Amidst the overarching trend of deep integration between the insurance and pharmaceutical healthcare industries, MediTrust Health provides solutions to both the pharmaceutical and insurance sectors, while also offering diversified, affordable, and high-quality medical health services and coverage to end-users., thereby promoting the gradual coverage of high-quality medical and health resources for people across China, enhancing drug accessibility with high quality and efficiency, and alleviating the burden of medical expenses.

For example, traditional medical insurance claims often require patients to pay for treatment out-of-pocket first and then seek reimbursement from the insurer after discharge. This post-payment reimbursement model does not effectively alleviate patients’ financial burden. In contrast, MediTrust Health’s innovative “direct billing with commercial insurance” model significantly reduces the out-of-pocket cost pressure for medication, enabling insured cancer patients to access expensive specialized oncology drugs in a timely manner.

Driven by business innovation, MediTrust Health has launched a diverse range of inclusive health insurance products along with various medical and healthcare benefits and services., building a bridge of efficient services among pharmaceutical companies, insurance providers, hospitals, and patients, fostering a virtuous cycle among payers, product and service suppliers, and end-users in the industry. This promotes the deep integration of high-quality medical and health resources with health insurance, delivering more affordable, higher-quality, and more precise healthcare services and protection to every household.

For example, in the Shanghai-specific commercial supplementary medical insurance project known as “Hu Hui Bao,” MediTrust Health, serving as the pharmaceutical service provider for two consecutive years, has continuously helped patients save on medication costs and alleviate treatment burdens when using new and specialized drugs. Moreover, MediTrust Health further expanded the number of covered specialized drugs under the 2022 edition of “Hu Hui Bao” to 25, thereby enhancing the accessibility of new and specialized medications.

To date, MediTrust Health has provided professional product design, pharmaceutical services, and technical support for multiple products, including “Su Hui Bao,” “West Lake Yi Lian Bao,” “Hui Qu Bao,” “Hu Hui Bao,” and “Beijing Pu Hui Jian Kang Bao.” Its services have cumulatively covered more than 100 cities, such as Beijing, Shanghai, Hangzhou, and Ningbo, serving nearly 100 million individuals.

In addition, to alleviate the financial burden on patients undergoing CAR-T therapy, MediTrust Health has established strategic partnerships with multiple insurance companies and the two major domestic pharmaceutical manufacturers of CAR-T therapies. It has successfully included CAR-T therapy in various "Huimin Bao" (inclusive commercial health insurance) projects, thereby constructing a dual protection network of "inclusive insurance coverage + health services" for a broad patient population.

It is evident that, in addition to aggregating diverse stakeholder demands, MediTrust Health enhances value and strengthens protection capabilities within health coverage. Furthermore, it adds greater value-added services by offering comprehensive health management solutions. Through these efforts, MediTrust Health leverages diversified product formats to bridge the “last mile” of inclusive healthcare services and coverage, thereby delivering health services that truly align with public needs.

It is precisely through continuous innovation that MediTrust Health has gradually ushered in a period of rapid development, while also gaining greater favor and support from investors.

Since its establishment over five years ago, MediTrust Health has remained true to its original mission of “making high-quality medical resources accessible to more users and families,” which has enabled it to attract like-minded partners and investors during its growth.

Currently, strategic shareholders of MediTrust Health include Shanghai Pharmaceuticals, China Life Reinsurance, the Shanghai Biomedical Fund, and several other top-tier domestic capital firms. These stakeholders have fully leveraged their respective advantages to deeply integrate their core businesses into MediTrust Health’s service ecosystem, thereby achieving win-win outcomes across the industry.

The introduction of HSBC as an international strategic investor by MediTrust Health will accelerate its development.More importantly, the collaboration between the two parties can bring more new possibilities to the industry.

The reason lies in the fact that one party is MediTrust Health, China’s leading inclusive healthcare services and protection platform, while the other is HSBC, one of the world’s largest banking and financial services institutions. The two can leverage their respective advantageous “genes” to achieve strong complementarity.

In response, Zhang Xiaodong, Founder and CEO of MediTrust Health, stated: “HSBC is one of the most renowned financial services institutions globally. We are delighted to have earned the trust and investment of HSBC Group and to embark on multiple collaborations. Both parties are committed to witnessing the continuous growth of the mainland China healthcare market, enabling more people to access a wider range of high-quality health services. This partnership allows us to combine our specialized expertise with HSBC’s global capabilities to jointly develop cutting-edge healthcare security solutions. I look forward to collaborating with HSBC to accelerate innovation in our healthcare, health security services, and technology products in both breadth and depth, thereby contributing to the development of a multi-tiered healthcare security system in mainland China.”

Nuno Matos, CEO of Wealth and Personal Banking at HSBC, commented, “Our investment in MediTrust Health reflects our strategic focus on enhancing health, protection, and wealth management capabilities in mainland China, particularly across the Greater Bay Area. Our customers seek high-quality, accessible healthcare services, wish to be financially prepared for rising healthcare costs, and are embracing more active and healthy lifestyles. With its robust pharmaceutical network, expertise in helping customers access comprehensive disease coverage, and innovative products and claims systems, MediTrust Health will enable us to better leverage these advantageous resources through this partnership.”

Next,With strategic support from HSBC, MediTrust Health will be better positioned to solidify its industry-leading advantage and closed-loop value ecosystem.

With continuous policy support, MediTrust Health will continue to empower insurance companies to leverage their professional strengths and offer specialized products and services, thereby extending high-quality medical and healthcare benefits to every household and contributing to the creation of a happier future society.

Healthcare is a vital industry for safeguarding people's livelihoods.

Currently, China's healthcare industry is in a period of vigorous development.According to PwC data, the market size of China’s healthcare industry reached RMB 13 trillion in 2021. Having experienced rapid growth over the past eight years with a compound annual growth rate (CAGR) of 13%, it has emerged as the second-largest market globally.

Meanwhile, under the combined impact of factors such as the COVID-19 pandemic and an accelerating aging trend, national health awareness has significantly improved, with demand for health products and services exhibiting multi-level, diversified, and personalized characteristics. Notably, a growing number of residents are willing to pay out-of-pocket for care at specialized medical institutions or to utilize advanced medical technologies, and they demonstrate a willingness to purchase health management services.

It is important to recognize that while China’s basic medical insurance system fulfills the role of “broad coverage and basic protection,” it does not cover items outside the national reimbursement drug list, nor does it cover the out-of-pocket expenses associated with critical, severe, and rare diseases. Therefore, the government has been continuously issuing guidance documents to accelerate the development of commercial health insurance, positioning it as a key payer for healthcare costs, thereby alleviating the financial pressure on both the basic medical insurance fund and individual household expenditures.

For instance, the Report to the 20th National Congress of the Communist Party of China emphasized advancing the Healthy China Initiative by prioritizing the protection of people’s health as a strategic development priority. It called for improving the social security system to establish a multi-tiered framework that covers all citizens, integrates urban and rural areas, ensures fairness and uniformity, adheres to safety and regulatory standards, and remains sustainable. Regarding medical insurance, the Report specifically highlighted the need to expand social insurance coverage, promote the orderly integration of multi-tiered medical security systems, improve critical illness insurance and medical assistance programs, implement direct settlement for cross-regional medical services, establish a long-term care insurance system, and actively develop commercial medical insurance.

Guided by various policies, China is actively promoting the establishment of a multi-tiered medical security system and significantly enhancing the quality of medical services and the overall health of its population, thereby accelerating the development of an inclusive health ecosystem and supporting the continuous improvement of the country’s multi-tiered medical security system.

In this process, the integration of the insurance and pharmaceutical healthcare industries has become a crucial pathway to align with national health needs and drive the high-quality development of the broader healthcare sector. Consequently, the insurance industry, characterized by high professional barriers, and the medical industry are ushering in broad prospects for industrial synergy.

In practice, MediTrust Health has aligned its development with the broader trend of building a multi-tiered medical security system, striving to promote high-quality and efficient growth in the broader healthcare industry. By empowering pharmaceutical companies, pharmacies, insurance firms, and medical institutions, it has fully integrated various stakeholders across the industry, achieving end-to-end connectivity throughout the entire healthcare ecosystem. To date, MediTrust Health’s medical and pharmaceutical network has covered more than 300 cities nationwide, served over 200 million insurance policies, expanded its Huimin Bao (city-specific supplemental medical insurance) programs to more than 100 cities across China, and benefited nearly 2 million patients.

Furthermore, as a key initiative under the “Inclusive Health” framework, the city-specific Huiminbao projects in which MediTrust Health is deeply involved are closely integrated with basic medical insurance. These projects have made proactive and beneficial explorations in breaking through coverage barriers for individuals with pre-existing conditions and incorporating diversified health management services, thereby effectively alleviating the financial burden of medical care and medication on the public, supporting the establishment of a multi-tiered medical security system, and contributing to the “Healthy China” initiative.

Against the backdrop of national policy support and transformative development, the platform economy has become a key driver for establishing new infrastructure that is equitable, convenient, and inclusive. As China’s leading platform for inclusive healthcare services and coverage, MediTrust Health, bolstered by HSBC’s strategic support and leveraging the strengths of its existing shareholders, is better positioned and more confident in solidifying its industry leadership and closed-loop value ecosystem. This will enable higher-quality healthcare services to benefit every household, contributing to the building of a happier future society.

In summary, it is evident that innovative enterprises represented by MediTrust Health have effectively bridged gaps in the multi-tiered medical security system, prevented social issues such as poverty caused or exacerbated by illness, and further promoted supply-side innovation in inclusive insurance across society.

Looking ahead, the exploration of an inclusive health ecosystem will continue to focus on innovation-driven protection centered on medical and health management, delivering tangible healthcare management experiences to the general public. This aligns with the health service objectives required by “Healthy China 2030” and constitutes an indispensable component in achieving “common prosperity in health.”

The Road Ahead Is Long: Time Is an Effective Measure of Value—Innovative Enterprises That Earn Enduring User Trust and Confidence Will Emerge as the True Gold Amidst the Industry’s Rigorous Selection.

Because every exploration and innovation by industry enterprises represents a steadfast commitment to the mission of “fulfilling people’s aspirations for a better life.”

MediTrust Health, established in 2017, is a leading innovative inclusive healthcare service and protection platform in China. Driven by smart technology and centered on its dual platforms of healthcare and insurance, it is committed to providing users and their families with more comprehensive, affordable, and high-quality medical and health services. As an innovator in the industry, MediTrust Health connects every participant, adheres to patient-centered innovation in medical services, and assists in building a happier future society. Leveraging high-quality medical and health services, MediTrust Health helps each patient manage medical expenses more efficiently and provides a protective umbrella for every family.

HSBC Holdings plc is the parent company of HSBC Group, with its headquarters in London. The Group maintains offices in 63 countries and territories across Europe, Asia, North America, Latin America, and the Middle East and North Africa, serving customers worldwide. As of September 30, 2022, the Group’s assets totaled $2,992 billion, making it one of the largest banking and financial services organizations in the world.