Media releases

June 12, 2008

Medibank confirms discussions with ahm

Medibank Private announced today it has put forward a submission to acquire private health insurer ahm, to extend its health and disease management capability.

Medibank Private Managing Director, George Savvides, expressed his enthusiasm for the potential of this proposal.

"Ultimately this is about looking after our members so they remain healthier. Purchasing ahm would significantly extend our capability to offer preventative and chronic disease management services to our members. We see this as a huge positive for the members of both funds.

"Medibank believes that for private health insurance to be sustainable long term, funds must move from a reactive posture to a prevention and health management capability that better assists members to improved health outcomes and at the same time lowers the health costs on the fund," Mr Savvides said.

The Australian Government has made health, prevention and chronic disease management a priority. Medibank Private is increasing its role in this area by integrating health management into its core health insurance business.

"ahm is currently managing these programs better than any other health insurer. We have had a genuine interest in the area for a long time and currently have a number of innovative pilot programs running.

"On the other hand, Medibank Private is an established industry leader, and we have many strengths and resources complementary to ahm. If our proposal is accepted the value for both organisations and for both groups of members is in realising these benefits," he said.

The proposal to acquire ahm is currently under negotiation.

For media inquiries please call
Sarah Chibnall, Medibank Private
0423 76 26 76


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