Medibank Private Limited (ASX: MPL) has disclosed that it has acquired Better Medical, one of the leading GP and medical clinic networks in Australia, for an amount close to AUD 159 million, contingent on closing adjustments.
The Medibank primary care expansion is a manifestation of the company’s strategic intent to increase its presence in the national healthcare system. Better Medical is running 61 GO and medical clinics in total, namely in Victoria, Queensland, South Australia and Tasmania. The purchase will give Medibank greater health care coverage, thereby supporting its Amplar Health network.
Why Is Medibank Investing In Primary Care Growth?
Medibank’s reasoning in primary care derives from the increasing clamour for the preventive and early-intervention health care models. Research done by the company indicates that over 80% of the GPs wanting to provide more preventive care still are trying to overcome the obstacles of limited time and administrative workloads.
The BAD Medical acquisition project is about bringing in the connected-care systems, digital tools and streamlining operations to support clinicians in dealing with the growing demands on their time. The result is expected to be improved access for patients, already promoting clinician autonomy, but frequently visiting health interventions at an earlier stage. 
Medibank acquires Better Medical for about AUD 159 million.
Medibank Acquisition Better Medical: Deal Details And Scope
Better Medical was founded in 2015 and has since then built up a network of over 800 doctors, nurses, and other healthcare professionals. The clinics will remain doctor-led and will provide care to all community members without any restrictions.
Medibank has also reconfirmed that the purchase of the Better Medical Network will not alter or lessen the identity and independence of each clinic. The agreement is still waiting for a green light from the Australian Competition and Consumer Commission (ACCC) and other standard conditions. The transaction is expected to be completed by the end of the third quarter of FY26.
Medibank Primary Care Expansion Strengthens Health Segment Strategy
Medibank’s acquisition of Better Medical was a strategic move that targeted growth in its already large health segment, which currently consists of a majority stake in the Myhealth Medical Group with 105 clinics in the eastern part of Australia alone. The Medibank acquisition of Better Medical is part of its overall goal to achieve AUD 200 million in annual health-segment profit and AUD 700 million in capital employed by FY30.
The deal will be financed entirely with Medibank’s existing unallocated capital. The company has indicated that it will spend a total of AUD 218 million for its combined mergers and acquisitions during FY24 to FY26, the upper range of its AUD 150 million-250 million target investment window.
What Are The Financial Implications Of The Better Medical Network Acquisition?
Better Medical is expected to have an EBITDA of about AUD 6 million for the first year, concluding on June 30, 2026. Medibank’s short-term profitability will be facilitated by this contribution, whilst the group is also getting positioned for long-term growth in the healthcare sector.
The company reiterated that the partnership will not only provide financial security but also result in better health. Medibank is of the opinion that the combination of Better Medical’s resources will enable the creation of large-scale care models that would mainly focus on prevention, early diagnosis, and chronic disease management.
How Will This Acquisition Affect Patients And Clinicians?
According to Medibank, the purchase of Better Medical would give the doctors more time to attend to the patients while at the same time cutting down on the paperwork. Patients will have better access to the network of services, and the preventive-care paths will also be improved.
The project is a reaction to the issue of chronic diseases, which are responsible for more than one-third of the preventable conditions in Australia. With the Medibank primary care expansion, the company is looking to facilitate digital health innovation, take care continuity to the next level, and enable clinician-led decision-making to happen faster.
Also Read: Medibank’s Bold Vision: Doubling Health Engagement to 10 Million by 2030
Frequently Asked Questions (FAQs)
Q1: What regions does the Better Medical Network cover?
Better Medical Network is running 61 general practices and medical clinics throughout Victoria, Queensland, South Australia, and Tasmania.
Q2: What is the total cost of the Medibank acquisition?
The acquisition will cost around AUD 159 million, with final account adjustments made based on the actual date of closure.
Q3: When will the deal be finalised?
It will take until the end of the third quarter of FY26 for the deal to be finalised, with ACCC approval awaited.
Q4: In what way is Medibank’s growth strategy impacted by this acquisition?
Medibank is furthering its strategy of boosting the health sector’s profit to AUD 200 million and investment to about AUD 700 million by the end of FY30 through the acquisition.
