Medibank increases primary care investment through Myhealth

Medibank is increasing its investment in Myhealth Medical Group (Myhealth) recognising the critical role GPs play in prevention, early detection and ongoing care and support in the community, including people living with complex and chronic conditions.

Medibank will increase its shareholding from 49% to 90% for around $50.8 million, with up to an additional $1.01 million based on Myhealth’s financial performance in FY24. The transaction will be funded from existing cash resources and is expected to complete on 5 January 2024.

Medibank CEO David Koczkar said:

Primary care is at the heart of the Australian health system. More investment in GP-led care is critical, so that Australians can have their immediate health needs met as well as having a greater focus on prevention.

“A proactive and coordinated system that brings together the benefits of in-clinic primary care, home-based care and virtual care is central to meeting the future challenges set out in the Australian Government’s Strengthening Medicare Taskforce Report.

“The challenge facing the entire health system is how to ensure a more connected healthcare experience that benefits patients and their families as well as the health professionals who provide that care.

“This is why we are increasing our commitment to primary care, to help contribute to a healthier community with a focus on preventative care, which has a positive impact on avoidable hospitalisation and contributes to a more sustainable health system.

“We are very focused on this being a GP-led business where GPs have full clinical autonomy. We are very committed to improving the experience for GPs and to help them better support their patients.

“Through Amplar Health, our team is already working alongside Myhealth GPs to develop new GP-led programs in several Western Sydney clinics to improve the health experiences of patients with chronic conditions such as Type 2 Diabetes as well as mental health conditions.

“Over the next few years Medibank is also investing up to $3 million to develop these new prevention programs in Myhealth clinics, because people need more GP-led care to stay healthy and out of hospitals.”

Myhealth CEO Dr Hadrian Lee said:

“We are excited to be building on our partnership with Medibank, with a common goal of providing better support for the health professionals working within our organisation and ultimately providing better healthcare for all our patients. Providing high quality care remains the primary focus for all of us at Myhealth.

Importantly our GPs will continue to retain full clinical autonomy and continue to lead our clinical teams.

For the 12 months ending 30 June 2023, Myhealth reported EBIT of $16 million and NPAT of $6.1 million (Medibank’s pro-forma share of this NPAT would have been $3.9 million). From the date of acquisition, Medibank will report 100% of Myhealth’s EBIT in the Medibank Health segment and its NPAT fully consolidated.