Ant Health has completed the acquisition of Fengshi Health, a prominent domestic healthcare services provider, according to exclusive reporting. This strategic move is designed to enhance its one-stop direct billing experience that integrates both medical insurance and commercial insurance systems.

This marks the second major expansion of Ant Health's ecosystem in recent months, following its acquisition of Boohee Health in early July. The integration will see Fengshi Health's core capabilities fully absorbed into Ant Health's existing service framework.

Fengshi Health, operating under Shanghai Fengshi Health Technology Co., Ltd., was established in 2016 and is headquartered in Shanghai. The company holds a leading position in the specialized niche of commercial insurance operations management for mid-to-high-end medical institutions.

Currently, Fengshi Health's commercial insurance direct billing network covers more than 1,500 international departments and special needs units of public hospitals, as well as high-end private medical institutions. The company has deployed IoT smart terminals across these facilities, enabling direct settlement between insurance companies and medical providers at the point of care.

According to public records, Fengshi Health completed its angel round financing in 2016 with investment from Maxing Investment, followed by an A-round in December 2022 backed by Zhiyi Capital. The company's business model primarily serves medical institutions and insurance companies, generating revenue through service fees. Its proprietary automated settlement system has effectively addressed the standardization challenges between private healthcare providers and insurers.

To date, Fengshi Health has provided commercial insurance direct billing services to nearly one million policyholders and established partnerships with over ten insurance companies. In May 2021, the company disclosed that it had already achieved break-even status.

The direct billing model not only improves patient experience but also supports the sustainable development of medical insurance. In September of last year, the National Financial Regulatory Administration issued guidelines on promoting high-quality development of health insurance, calling for breakthrough progress in fast-track and direct claims processing for commercial medical insurance.

Prior to this acquisition, Ant Health had already implemented integrated settlement linking medical insurance codes with commercial insurance codes, serving users nationwide through the Alipay app and the Ant Afu app. With this acquisition complete, Ant Health is expected to extend its coverage to include the more than 1,500 private hospitals and public hospital international departments within Fengshi Health's network.

Industry analysts anticipate that by combining these capabilities with Ant Health's existing strengths in AI health applications, health management services, and medical-commercial insurance payment solutions, the company is well-positioned to accelerate the development of a comprehensive, full-cycle health services ecosystem.