Medibank (ASX: MPL) is strengthening its focus on preventative healthcare through the acquisition of a 33.4 per interest in medical clinic operator Myhealth Medical Group (Myhealth) for $63 million.
Founded in 2007, Myhealth delivers more than 2.5 million patient consultations per year and has tripled its number of clinics over the past five years in New South Wales, Victoria and Queensland to 86.
Medibank CEO Craig Drummond said the company's investment in Myhealth sees the insurer reinforce its commitment to Australia's general practitioners (GPs).
"GPs are the very heart of Australia's health system and the first point of contact when we have a health issue or concern," Drummond said.
"Our investment in Myhealth will support GPs to enhance the health and quality of life of their patients, which helps reduce high-cost admissions and in turn alleviate pressure on the health system.
"Medibank's investment in Myhealth also reflects our ongoing transformation into a broader healthcare company and complements our existing partnerships with doctors across the Australian health system."
Following the investment, GPs and Myhealth's management will still control the majority of the company and continue to manage the day-to-day operations of the clinics.
In addition, Medibank has assured patients that they will continue to be treated equitably with no clinical priority given to Medibank or any other private health insurance customers.
The investment has been welcomed by Myhealth founder Dr James Liang.
"There's a real opportunity to harness new evidence-based tools and resources to support more proactive and preventative care in the community," Liang said.
"Importantly, all of our current doctor and management shareholders are retaining their shares in the Myhealth group and remain 100 per cent committed to the company and their patients.
"I look forward to continuing to lead the Myhealth team as we continue to grow and support more patients."
The $63 million transaction will be funded entirely from MPL's existing cash resources and is expected to be completed by 31 March 2021.
Both Medibank's CFO Mark Rogers and group executive healthcare & strategy Dr Andrew Wilson will join Myhealth's board.
Shares in MPL are down 0.33 per cent to $3.02 per share at 2.19pm AEDT.
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