SYDNEY: Australian health insurer Medibank Private Ltd said on Wednesday it has agreed to acquire primary care provider Better Medical for approximately $159 million, expanding its foothold in the country’s general practitioner sector.
The acquisition of Better Medical, which operates a network of 61 GP and medical clinics across Victoria, Queensland, South Australia, and Tasmania, will see Medibank absorb around 800 doctors, nurses, and allied health practitioners.
The deal, to be funded from Medibank’s existing capital, is subject to approval from the Australian Competition and Consumer Commission (ACCC) and is expected to be completed by the end of the third quarter of the 2026 financial year.
Medibank, through its healthcare services arm Amplar Health, said the investment is part of its strategy to bolster primary care support and address under-investment in preventive health.
“Primary care is the cornerstone of the health system,” said Amplar Health CEO Robert 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.”
Better Medical CEO Craig Alchin said the clinics would remain doctor-led, with GPs retaining full clinical autonomy and continuing to set their own fees. All clinics will remain open to everyone.
The acquisition complements Medibank’s majority interest in the Myhealth Medical Group, which has 105 clinics. Better Medical is forecast to deliver EBITDA of around $6 million for the six months ending June 30, 2026.
The move brings Medibank’s total mergers and acquisitions spending between FY24 and FY26 to $218 million, near the top of its $150-$250 million target range. It supports the company’s goal to achieve at least $200 million in segment profit from its health division by FY30.