Medibank’s Expansion Risks and Rewards in Primary Care with Better Medical Deal
Medibank is set to acquire Better Medical, a network of 61 GP clinics across four states, for approximately $159 million, enhancing its primary care footprint and preventive health initiatives.
- Acquisition of Better Medical network spanning Victoria, Queensland, South Australia, Tasmania
- Deal valued at around $159 million, funded from existing capital
- Better Medical expected to deliver $6 million EBITDA in first half of FY26
- Acquisition complements Medibank’s Amplar Health and Myhealth Medical Group holdings
- Transaction subject to ACCC approval, targeted completion by Q3 FY26
Medibank’s Strategic Move into Primary Care
Medibank Private Limited has announced a significant expansion of its primary care services through the acquisition of Better Medical, a network of 61 general practitioner and medical clinics operating across Victoria, Queensland, South Australia, and Tasmania. The deal, valued at approximately $159 million, underscores Medibank’s commitment to strengthening its role in Australia’s primary healthcare landscape.
Better Medical, established in 2015, employs around 800 healthcare professionals including doctors, nurses, and allied health practitioners. This acquisition will integrate these clinics into Medibank’s existing Amplar Health network, which focuses on improving patient access, choice, and clinician support, thereby enhancing the delivery of proactive and preventive care.
Driving Preventive Care and Digital Innovation
Robert Read, CEO of Amplar Health, highlighted the importance of investing in primary care as a foundation for long-term community health. He emphasized that enabling GPs and their teams to provide more preventive care is beneficial not only for patients but also for the broader health system. Medibank plans to invest in Better Medical’s digital capabilities to reduce administrative burdens on clinicians and improve patient experiences.
Better Medical’s CEO, Craig Alchin, affirmed that the clinics will maintain their doctor-led, community-focused ethos with full clinical autonomy and independent fee setting. This approach aims to preserve local trust while leveraging Medibank’s resources to innovate and enhance care coordination.
Financial and Regulatory Outlook
The acquisition is expected to contribute approximately $6 million in EBITDA for the six months ending June 2026. Funded entirely from Medibank’s existing unallocated capital, the transaction aligns with the company’s broader strategy to grow its health segment profit to at least $200 million and increase capital employed to around $700 million by FY30.
Completion of the deal is contingent upon approval from the Australian Competition and Consumer Commission (ACCC) and other customary conditions, with an anticipated closing by the end of the third quarter of FY26. This acquisition brings Medibank’s total investment in mergers and acquisitions between FY24 and FY26 to $218 million, positioning it at the higher end of its targeted range.
Implications for the Australian Healthcare Sector
Medibank’s move to consolidate its presence in primary care through Better Medical and its majority stake in Myhealth Medical Group signals a strategic shift towards integrated healthcare delivery. By focusing on prevention and digital innovation, Medibank aims to address systemic challenges such as the growing prevalence of chronic conditions and the time constraints faced by GPs.
As the healthcare sector continues to evolve, this acquisition may set a precedent for insurers playing a more active role in primary care provision, potentially reshaping patient access and care coordination across Australia.
Bottom Line?
Medibank’s acquisition of Better Medical marks a bold step in reshaping primary care, with regulatory approval and integration execution now in focus.
Questions in the middle?
- How will Medibank integrate Better Medical’s clinics with its existing networks operationally and culturally?
- What specific digital innovations will Medibank implement to alleviate GP workload and enhance patient care?
- Could this acquisition trigger further consolidation in Australia’s primary care sector, and how will competitors respond?
