21 August 2015
To our members,
I am pleased to announce our full year results for the 2015 financial year (2015), our first as a listed business.
In 2015 we paid out a record $5.1 billion in member benefits and supported our members through over 400,000 surgeries, more than 1.2 million admissions to hospital and over 27 million ancillary services including dental, optical, physio and chiro.
We continued to manage our expenses carefully and ensured that when paying for our members’ healthcare we used your premiums wisely. This disciplined approach has in large part contributed to a net profit after tax* (NPAT) of $291.8 million, which is better than our Prospectus forecast. This result is good for our business and good for our members, many of whom are also shareholders.
While there have been many changes at Medibank as we’ve transitioned to being a listed business, the one thing that hasn’t changed is our focus on Better Health. The health of our 3.9 million members remains our priority.
We understand our members who require hospitalisation expect to receive the best possible care, while all our members want us to keep premiums as affordable as possible. We don’t see these important objectives – high quality care at an affordable price - as being in conflict with each other.
As an industry leader, we believe that Medibank has an important role to play in working closely with all elements of the healthcare system to improve both the quality and affordability of healthcare. In line with this, we are engaging in ongoing discussions with healthcare providers around how we can work together to improve quality and reduce waste and inefficiencies, ensuring our members receive the best possible care while they are in hospital and good value for their premiums.
The community in which we operate remains an important part of who we are. We continue to support the health of all Australians by directing one percent of our pre-tax profit to the Medibank Community Fund each financial year, which goes towards partnerships that improve the health and wellbeing of communities across Australia. The fund contributed more than $3.5 million in 2015, and has invested more than $13.8 million dollars over the past five years in community initiatives and health research to bring our ‘For Better Health’ purpose to life.
Thank you for continuing to trust Medibank to look after your health.
*On a pro forma basis which excludes the impact of certain one-off costs (mainly IPO-related)