Media releases

July 2, 2010

Medibank finalises acquisition of McKesson Asia-Pacific

Medibank today announced it has acquired fellow health services provider, McKesson Asia-Pacific - a move that will extend its health management capability and offer significant benefits for both organisations and their customers.

Medibank Private Managing Director, George Savvides, said the acquisition essentially completes Medibank's transformation into a genuine health company that offers health insurance and health solutions.

"Bringing McKesson on board has enabled us to build an organisation to meet not only the health financing requirements of our customers but also their desires to be healthier, to be able to navigate and access the best health solutions from our complex health system, and to feel that they can receive customer-centred health services that are available when they need it.

"Our acquisition of McKesson is a natural extension to our long-term business relationship and to the work that both organisations have been delivering in the broader health system. It is an exciting development for the Medibank Health Solutions division which is simultaneously helping people stay healthy and supporting Medibank's financial viability and sustainability.

"Medibank's newly acquired capabilities will assist us in containing the growth rate of health benefits which are expanding rapidly due to population ageing, rapid increases in technology costs and increased incidence of chronic disease," Mr Savvides said.

McKesson delivers multiple health management programs including 'healthdirect Australia', 'NURSE-ON-CALL' and 'Healthline', as well as 'betterhealth on call' on behalf of Medibank. Mr Savvides believes that joining the two companies enables broader customer access to McKesson's programs, as well as business growth.

"Medibank is passionate about its Purpose of ensuring customers are clearly better off. One of the ways we do this is by supporting customer wellbeing with health solutions and care coordination such as telephone health coaching, dental and eye clinics and nurse triage.

"The expansion of our Health Solutions business represents a key strategic focus for Medibank, and the acquisition of McKesson will deliver on our Purpose for our customers. We are committed to supporting and growing McKesson's business and customer base.

"Finally, the acquisition will also provide us with a competitive edge on our competitors in the private health insurance industry. From today it is official: for people who care about their health, there really is one private health insurance choice.

The innovative Medibank Health Solutions division now has a combined workforce of 2,000 health professionals including nurses, doctors, psychologists, dentists, physiotherapists and other allied health professionals across Australia and New Zealand.

The acquisition received regulatory approval in May.

About McKesson
McKesson Asia-Pacific is a leading provider of phone and web-based healthcare services, including telephone triage, health and wellness advice, chronic disease management and mental health services in Australia and New Zealand. Founded in 1995 and acquired by McKesson in 2000, McKesson Asia-Pacific has grown to be a core part of the healthcare systems of those two countries. Medibank has been a McKesson Asia-Pacific customer and offers many complementary services to its customers.

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