Medibank wants you to see the doctor. Street Talk understands the $9.7 billion ASX-listed private health insurance giant is negotiating with Myhealth Medical Group’s largest shareholder, founder James Liang, to buy out his stake.
The deal will make good on Medibank’s promise to double down on primary healthcare as it seeks to get involved in members’ health outcomes from day one.
It is unclear how much Liang still owns of the medical centre group, but sources said a deal will see Medibank hold a majority share of the company alongside other founding investors, including GPs, on the register.
Medibank chief executive David Koczkar. Eamon Gallagher
Medibank emerged on Myhealth’s register in 2021 after nabbing Crescent Capital’s non-controlling interest for $63 million. In what was a complex deal structure, Medibank took a 49 per cent stake in the parent company, Myhealth Medical Holdings, which equates to a 33.4 per cent economic interest across the portfolio of clinics.
As part of the deal, Liang agreed to remain committed to the business under Medibank’s ownership. At the time, Myhealth was expected to deliver $21 million EBITDA in FY21.
A Medibank spokesperson declined to comment when contacted by Street Talk. It is understood a deal has not yet been signed, although both sides were said to be positive of agreeing terms in coming weeks.
It is not surprising to see Medibank double down on GP services. Primary care is considered the engine room of the healthcare system that plays a key role in catching and treating illnesses before they become medical emergencies.
By exerting more control over what happens next, health insurers can push for better health outcomes for their members earlier on, which will also save on
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