Medibank Private expands its national GP clinic network with $159m deal for Better Medical

Australian health insurance group Medibank Private (ASX: MPL) is boosting its national footprint in the medical sector across three states through the acquisition of the Better Medical group for $159 million.

The deal, which will see Medibank scoop up the majority interest of private equity group Livingbridge as well as minority shareholders, will add a network of 61 GP and medical clinics in Victoria, Queensland, South Australia and Tasmania to the company’s existing portfolio of medical facilities.

This includes the Myhealth Medical Group in which Medibank acquired a 33 per cent stake in 2021 for $63 million and moved to 90 per cent ownership at the end of last year. Myhealth has a network of 105 medical clinics across eastern Australia.

The Better Medical operations will join Medibank Private’s Amplar Health network which the group says is focused on improving access, choice and control for both patients and clinicians.

The Adelaide-headquartered Better Medical was established in 2015 and since then has grown to support about 800 doctors, nurses and allied health practitioners.

Amplar Health CEO Robert Read says the acquisition is part of Medibank’s focus on supporting the long-term health and wellbeing of the community through Australia’s primary care system.

The medical insurance group plans to invest in Better Medical’s digital capabilities to drive greater efficiencies for patients and GPs across the network.

“Primary care is the cornerstone of the health system, with GPs, nurses and other health professionals vital to early intervention and prevention in their communities,” says Read.

“Investing in GPs and their teams to enable them to deliver more proactive and preventative care is good for patients, good for doctors and good for the health system.

“The need for more investment in prevention is clear. The rate of Australians living with chronic conditions continues to grow even though around one third of these conditions are preventable.”

Read notes that recent data from the Royal Australian College of General Practitioners shows that more than four in five practising GPs want to provide more preventive care to their patients, but time is one of the biggest barriers.

“As a health company, we see the impact of an under-investment in prevention every day,” says Read.

“It's why we are taking steps to address this through our investments in wellbeing, primary care and community and acute care.

“We know GPs are under pressure and that we can help to remove some of the barriers. Part of this will be investing in Better Medical’s digital capabilities to free up clinicians’ time and improve patient access and experience.

“Another is giving GPs the tools they need to provide more proactive, comprehensive and connected care to their patients.”

Medibank Private’s acquisition will be funded from existing unallocated capital and the business is expected to deliver EBITDA of about $6 million for the six months ending 30 June 2026.

The health insurance giant says the deal aligns with its strategy to expand in the health sector, supporting its target of boosting the Medibank Health division’s profit to at least $200 million and growing capital employed to about $700 million by FY30.

The Better Medical acquisition takes the total amount Medibank has invested in mergers and acquisitions over the past two years to $218 million, which is towards the top end of the $150 million to $250 million target range.

Better Medical CEO Craig Alchin says the investment by Medibank Private will support the GP network’s ongoing commitment to quality care and innovation.

“Better Medical, Medibank and Amplar Health share a vision for primary care that champions patients, prevention and better care coordination,” says Alchin.

“There’s a mutual understanding that proactive and preventative care empowers patients as well as our people who provide it to them.

“Our GPs will continue to have full clinical autonomy and will continue to set their fees independently.

“We are part of the communities where we operate, and that local ethos won’t change. All the clinics will remain doctor-led and open to everyone.”

The Better Medical acquisition is expected to be completed in the third quarter of FY26.