Medibank Targets $200M Health Segment Earnings and 26.8% Market Share by FY30

The Wellbeing segment focuses on everyday health, corporate health, and financial wellbeing, leveraging programs like Live Better, one of Australia’s largest health and wellbeing rewards platforms. Primary Care emphasizes accessible, proactive, and personalised services through a national network of multidisciplinary clinics and virtual care options, aiming to meet the growing demand for prevention and chronic disease management.

Community and Acute Care addresses the increasing need for care delivered outside traditional hospital settings, including home-based acute care and ambulatory services. This segment is critical in easing hospital capacity pressures and improving patient experiences. Finally, Health Insurance remains Medibank’s core business, serving over 4.2 million customers with a focus on delivering value, choice, and control through differentiated products and dual brands.

Driving the Health Transition

Medibank’s CEO David Koczkar highlighted the urgent need for transformation in Australia’s healthcare system, which faces rising demand from an ageing population, chronic disease, and mental health challenges. The company is championing four systemic shifts – from treatment to prevention, hospital to community, analogue to digital, and generic to personalised care.

These shifts are supported by significant investments in technology, including AI-driven diagnostics, virtual care platforms, remote patient monitoring, and data interoperability. Medibank’s Amplar Health network exemplifies this approach, integrating virtual and in-person services to provide seamless, patient-centred care.

Capital Discipline and Growth Execution

Medibank plans to grow both organically and through strategic acquisitions and partnerships, with a disciplined capital allocation approach. The company expects to increase capital employed in its Health segment from approximately $450 million to $700 million by FY30, with the flexibility to invest further to accelerate growth.

This growth is expected to create shareholder value by supporting PHI customer growth, proactively managing claims costs through better chronic disease management, and delivering diversified earnings streams across public and private health sectors.

Implications for the Australian Health Landscape

Medibank’s vision positions it as a leader in Australia’s health transition, aiming not only to grow its business but also to drive meaningful change in the health system. By focusing on integrated care models and leveraging technology, Medibank seeks to improve health outcomes, increase productivity, and enhance equity and patient experiences across the country.

As the company scales its health offerings and deepens customer engagement, it will be closely watched by investors and policymakers alike for its ability to execute this ambitious transformation in a complex and evolving healthcare environment.