BSR leaves his post as Medi Assist auditor

MUMBAI: BSR & Co, sub-licensee of KPMG in India, has resigned as auditor of Medi Assist Insurance TPA. Medi is the largest third-party administrator (TPA), providing services to health insurers. The audit firm is said to have disputes with the company, which led to the premature resignation.
Medi Assist was planning an IPO and had filed its draft red herring prospectus (DRHP) earlier this year. The DRHP appoints BSR as auditor and declares that there has been no change for three years. According to sources, the differences concerned the company’s settlement of claims with healthcare providers. Sources said the company changed the payment process to speed up settlement during the Covid pandemic, which auditors disagreed on.
When contacted, KPMG said it would not comment on the development. A spokesperson for Medi Assist, in response to a question, said that, in line with industry practice, the company has adapted its Covid response to the new world of unpredictability. “As the largest TPA, we consistently provide business continuity and help our customers access top quality healthcare. We have also engaged with a leading audit firm and are in the process of completing their appointment formalities. This change has no impact on the company, its performance or its growth opportunities. said the spokesperson.
In the resignation letter, BSR & Co stated that they completed the audit for fiscal year 21 and issued an opinion disclaimer on November 16, 2021. We performed our annual retention process and, based on this assessment, we express our inability to continue as auditors of the company with immediate effect.
The source said the company is in talks to appoint the PwC licensee as the new internal auditor and is also considering appointing BDO as an external auditor. Medi Assist is the largest health benefits administrator in India. In its DRHP, Medi Assist said it has a market share of 22-25% of total APT revenues and 44% of their profits.

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