Medibank takes full control of ‘award-winning digital platform’

Medicare invested $10m into Medinet in 2022.

The $12bn Australian-listed health insurer Medibank has purchased a 100 per cent interest in healthcare technology business Medinet after investing $10m in the business in 2022.

The move secured Medibank a 3.85 per cent interest in the company at the time by way of a convertible note.

Medibank described the business in 2022 as an “award-winning digital platform” that was launched in 2019 and was being used by a number of GP clinics in Australia, using Medinet’s MyPractice app.

The app enables GPs to offer consults with their patients over video, audio and chat, and generate digital referrals to specialists pathology and imaging. At the time, the app had an average of 10,000 users daily and was among the top five downloaded healthcare apps in Australia.

Medibank bought into the business to enable it to further develop and scale its technology and operational capability to provide more GP services.

For the six months to December, Medibank reported a 0.8 per cent fall in net profit to $340.3m, as management and operating expenses increased, but revenue gained 6.1 per cent to $4bn on the previous corresponding period.

Medibank said it expected moderating industry growth for the 2025 financial year relative to fiscal 2024.

DataRoom reported last year that Medibank was partnering with private equity and Macquarie Capital to explore healthcare acquisitions.

It is part of the health insurer’s strategy of investing directly in healthcare assets to improve outcomes for its patients.

Last year, it was making inquiries surrounding investments in primary healthcare

General practice has been a challenging area in the healthcare industry thanks to a shortage of doctors prepared to take on bulk-billing cases.

In the 2023 budget, the federal government announced $358.5m over five years to establish 58 Medicare Urgent Care Clinics to reduce pressure on hospitals and emergency departments.

In 2023, Medibank, together with Macquarie, was the underbidder for day surgery owner Cura Group that was sold to Intermediate Capital Group for about $600m.

Private health insurers are under industry and government pressure to increase payments for patient services by healthcare providers struggling with higher industry costs and staff shortages.

Medibank in 2020 purchased a 49 per cent stake in East Sydney hospital in Woolloomooloo and has a joint venture with mental health service provider Aurora Healthcare, initially investing $31m into three hospitals.