MedRui Files IPO Prospectus: Integrating Payers into International Healthcare as a Strategic Imperative

MedRui, officially known as Beijing MedRui Hospital Management Co., Ltd., is an international medical service platform established in December 2014. The platform offers diversified health services centered on international second medical opinions, overseas treatment for critical illnesses, overseas health check-ups, and overseas rehabilitation.

Previously, VCBeat reported on some cross-border medical consultation projects, such as “Chunyu International: Becoming the “Ctrip” of Cross-Border Healthcare》、《Disintermediating the Middleman: Tangren Health Persists in Operating a Free Cross-Border Medical Information Platform》, etc., all of which provide detailed accounts of the booming cross-border healthcare sector; this article will not revisit these points.

The Intermediary-Based Cross-Border Medical Consultation and Treatment Service Market Is Small and Plagued by Numerous Pain Points

Li Hongzhao mentioned that, compared with other cross-border medical treatment projects, Medray’s project places greater emphasis on healthcare itself, starting from the needs of patients.

Mr. Li believes that some cross-border medical consultation companies currently on the market operate under a single intermediary service model, where their role is to refer patients to overseas hospitals and provide services such as medical accompaniment and medical record translation. However, this model is highly personalized and not suitable for large-scale replication and promotion. Meanwhile, the single-intermediary model merely exploits information asymmetry between domestic and international markets, resulting in “pseudo-international healthcare.” True international healthcare should focus on patients’ essential needs, start from the patient’s perspective, leverage international healthcare platforms to identify suitable hospitals and physicians both domestically and abroad, and ultimately improve patients’ health. Medray believes that the market for intermediary-style cross-border medical consultation services will eventually be encroached upon by international healthcare institutions centered on patients’ health needs.

Furthermore, traditional overseas medical treatment services currently available on the market suffer from numerous issues, with significant pain points for patients. On one hand, these conventional services merely facilitate patients’ travel abroad, prioritizing the profitability of agencies or platforms. They lack firsthand experience of the living environment and hospital atmosphere at the destination, making them unable to accurately inform patients about the specific procedures, potential risks, and corresponding mitigation strategies involved in seeking medical care overseas. On the other hand, they fail to provide personalized, proactive follow-up and support services regarding post-return treatment plans, medication management, and rehabilitation needs.

Collaborate with overseas insurance companies to provide “case management” for users

Li Hongzhao, CEO of Medray, possesses extensive experience in international healthcare management. His more than a decade of overseas medical and consulting management experience has given him a clear insight: the most critical element in building an international healthcare platform that aligns with both China’s national conditions and global healthcare demands is integrating payers into the platform. Mr. Li stated, “In the United States, insurance companies hold significant leverage over hospitals. It is almost unimaginable that if U.S. insurers deem the diagnostic/treatment plans or costs proposed by a hospital unreasonable, the hospital has no authority to compel patients to unconditionally accept such plans or charges. We have established medical alliances with authoritative U.S. insurance companies, directly engaging payers to implement case-by-case management for patients. This approach substantially safeguards the interests of every patient, both in terms of treatment protocols and medical costs.”

During cross-border medical treatment, patients often face a critical question: How much will their care cost, and is the expense truly justified? In reality, many patients can only answer this after returning from their overseas trip. Due to a lack of clarity beforehand regarding the diagnostic and treatment workflow and the costs associated with each service, they frequently incur unnecessary expenses. For instance, tests conducted domestically are often not recognized by foreign hospitals, requiring patients to undergo them again upon arrival. Given the high cost of medical examinations abroad, this redundancy not only wastes money but also delays timely diagnosis and treatment.

In response to this issue, on September 23, 2015, Medray International Healthcare entered into a strategic cooperation agreement with the US Medical Network Alliance. Medray was designated as its exclusive overseas medical partner for the Chinese market, collaborating to provide Chinese citizens with access to medical treatment in the United States, remote second opinions, and health examination services.

Through this collaboration, Medray will introduce the U.S. hospital network resources and service models of the American Medical Network Alliance into China, enabling domestic patients to receive the same treatment as U.S. citizens in terms of appointment timeliness, medical costs, and in-hospital service coordination. In the future, Chinese citizens seeking medical care in the United States will not only be able to quickly schedule appointments with specialists at major U.S. hospitals but also enjoy significant discounts on medical expenses compared to ordinary international patients.

Meanwhile, when Chinese patients seek medical care at U.S. hospitals, professional service staff from the U.S. Medical Network Alliance and MedRay will collaborate with hospital personnel to ensure that patients receive the highest quality of diagnostic and therapeutic services.

Medray Medical Consultation Process

For patients, beyond the financial benefits, the greatest advantage of this partnership is the ability to gain a clear understanding of their diagnosis and treatment journey. Medray has entered into a strategic agreement with the US Medical Network Alliance to provide case management services for patients. Specifically, before departing for abroad, patients can learn through Medray what treatments and examinations they will need during their first week in the United States, along with the cost of each item. Upon completion of these initial procedures, the US Medical Network Alliance will continue to coordinate with physicians and inform patients of the detailed next steps. The entire overseas treatment process is compiled into a clear, at-a-glance checklist for the patient.

This collaboration covers 40 U.S. hospitals, including top-ranked comprehensive and specialized medical institutions such as the Mayo Clinic, Massachusetts General Hospital, Seattle Cancer Care Alliance, and the University of Pittsburgh Medical Center. Building on the expedited appointment channels already established through its U.S. healthcare network alliance, Medray offers domestic patients discounts ranging from 10% to 40% on medical expenses at these 40 hospitals.

It is understood that the US Medical Network Alliance is affiliated with one of the largest health insurance groups in the United States, boasting an extensive hospital network covering the entire country. Each year, it provides health insurance, case management, and health management services to millions of American citizens. Members of the US Medical Network Alliance can enjoy discounts at 75,000 pharmacies. As the global leader in the pharmaceutical industry, the United States enables members to access the most advanced and cutting-edge scientific treatments available on the world market today.

Furthermore, to address the issue where medical test results obtained in China are not recognized abroad, Medray has partnered with premium private hospitals in China—including Beijing Tiantan Puhua Hospital and International Medical Center, and Island Women’s Hospital—to establish mutual recognition of diagnostic tests with U.S. hospitals. Test results from these partner institutions are fully accepted by Medray’s overseas affiliated hospitals, thereby eliminating redundant testing, reducing costs and time for patients, and refocusing cross-border healthcare on its core purpose: treatment.

In the course of collaboration, the U.S. Healthcare Network Alliance will also engage physicians from both China and abroad to conduct remote consultations for patients and provide second medical opinions.

One concern that arises when some patients seek medical treatment abroad is whether their condition can be effectively treated and what the treatment approach will be.

Li Hongzhao stated that, in reality, cross-border medical institutions are not hospitals, and the medical consultants on their teams are not licensed physicians practicing abroad, making it difficult for them to provide accurate and responsible answers to patients’ questions. Medray will help patients find personalized treatment plans tailored to their conditions through an online platform without needing to travel abroad. Medray’s collaborating physicians overseas will comprehensively evaluate patients’ medical records, past medical history, pathological test results, and medication history to provide diagnostic opinions and treatment plans for major diseases such as cardiovascular and cerebrovascular disorders, cancer, and tumors.

Additionally, patients face another pain point: uncertainty about which treatment plans must be pursued overseas, which allow for subsequent treatment and rehabilitation in China after undergoing surgery abroad, and which can be entirely managed within China. To address this, Medray collaborates with hospitals both domestically and internationally to design integrated medical services that span the entire journey from diagnosis to treatment and rehabilitation, following a “China–overseas–China” model tailored to specific diseases.

Collaborate with domestic insurers to innovate insurance products

Regarding profitability, on one hand, Medray charges fees for the use of its remote consultation platform and covers physician costs when patients utilize the service. On the other hand, Medray collaborates with insurance companies and other institutions to provide international healthcare management services, for which it charges corresponding fees.

Taking insurance companies as an example, they can partner with Medray to innovate products by providing policyholders with complimentary international medical services in the event of a critical illness. In return, the insurance companies pay Medray service fees based on the number of policyholders or the frequency of service utilization.

Furthermore, doctors both domestically and internationally will also be customers of Medray. In the future, Medray will attract foreign physicians to China to provide training and knowledge transfer for domestic physicians, and may also facilitate their practice within the country.

Currently, MedRay is undergoing Series A financing, and the funds raised will be used to further develop its business and implement specific products in domestic medical institutions.

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