Media releases

December 9, 2008

Medibank Private and Health Services Australia (HSA) join as part of Government plan to create better health solutions

Both Medibank Private and Health Services Australia (HSA) have welcomed the Australian Government's announcement today of plans to bring the two GBEs together to create a national organisation providing health insurance and health services.

Both companies confirmed they had been exploring opportunities for some time and believe the amalgamation has benefits for the Government and customers, and strengthened the future of both organisations.

Medibank Private is the largest Australian-owned private health insurer with more than three million members under private health insurance and diversified travel, life and pet insurance. HSA is one of Australia's leading providers of occupational and travel health services to government and corporate Australia. It operates services including health assessments, workplace health and injury prevention, rehabilitation case management and return to work programs.

Medibank Private Managing Director, Mr. George Savvides, said that joining the two government bodies made sense from a government and a consumer view point.

"The Government's reorganisation of Medibank Private and HSA creates a national integrated health services and insurance group that will allow an increased offering to our respective customers and more value for both companies," he said.

"HSA offers a professional health and medical workforce that undertakes health assessments and the management and prevention of workplace injury and illness. Medibank has developed a presence in workplace health and has moved to respond to the needs of its customers, and with the HSA capabilities will be able to further develop programs for Medibank Private workplace clients.

"The prospect of being able to offer a broader range of health services as a result of having the expertise and resources of HSA available internally will assist in the objective of improving the health of our three million customers," Mr Savvides said.

HSA Managing Director, Stan Macionis, said that bringing the companies together would enable them to better meet the health needs of their customers into the future.

"This positions both companies to offer a greater array of services to many more Australians" Mr Macionis said.

Beyond the immediate benefits of increased services for the Medibank and HSA customer base, the integration is a significant step in realising the potential of the reforms to private health insurance in Australia that came into effect in April 2007. The reforms have opened the door for private health funds to offer a broader array of services outside the hospital including chronic disease management and preventative health programs to members.

"The linking of Medibank and HSA is in line with industry direction in Australia and overseas, with several other health funds establishing strategic partnerships with health service providers," Mr Savvides said.


Following the merger, which is subject to final regulatory approvals, the two GBEs will continue to operate under their own names.

ENDS
For more information, please contact:

Medibank Private
Sarah Chibnall - 0423 76 26 76
E: sarah_chibnall@medibank.com.au
P: 03 8622 5181

HSA
Dene Cicci - 0434 601 163
E: dene.cicci@hsagroup.com.au
P: 03 9224 8818


About Medibank Private:
Medibank Private is the largest Australian-owned provider of private health insurance covering more than three million people. Medibank Private offers health insurance to all Australians through retail and corporate products, as well as catering for overseas students and visitors.

Medibank Private has a 'Members Choice' network of contracted health providers consisting of over 449 private hospitals and day surgeries and 4,038 ancillary providers nationally. It has approximately 1,500 staff and 105 retail centres nationally, a national call centre and online access at www.medibank.com.au.

About HSA:
Established in 1997, HSA is a government-owned business and Australia's leading national provider of occupational and travel health services to government and corporate Australia.

HSA employs over 1200 staff, including doctors, nurses, allied health professionals and administration staff. HSA offers a unique mix of services in the areas of occupational health, prevention and injury management, travel health and health assessment. These services are delivered through three business lines´┐ŻHealth for Industry, Work Solutions, and the Travel Doctor-TMVC from 45 sites Australia-wide.


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