The deal is part of the health insurer’s expansion into primary care.
Private health insurer Medibank will continue its expansion into the provision of primary care with a $159 million acquisition of Better Medical and its 61 general practices across four states.
According to a statement from Medibank, it is buying Better Medical from private equity firm Livingbridge and other minority shareholders.
Better Medical operates in Queensland, South Australia, Victoria and Tasmania with more than 500 GPs, nine doctor-owners and around 800 support staff.
Better Medical CEO Craig Alchin said clinics would remain autonomous and doctor-led, and they would continue to set their own fees.
“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.”
Mr Alchin said the investment would support Better Medical’s commitment to quality care and innovation.
“Better Medical, Medibank and [the insurer’s health arm] Amplar Health share a vision for primary care that champions patients, prevention and better care coordination,” Mr Alchin said.
“There’s a mutual understanding that proactive and preventative care empowers patients as well as our people who provide it to them.”
Robert Read, CEO of Amplar Health, said the investment was part of Medibank’s focus on supporting the long-term health and wellbeing of the community.
“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,” Mr Read said.
“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.
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Mr Read said the numbers of Australians living with chronic diseases continued to grow, despite one third of cases being preventable.
“The need for more investment in prevention is clear,” he said.
“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, with time being one of the biggest barriers.
“As a health company, we see the impact of an under-investment in prevention every day. 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.”
The transaction will be funded from existing unallocated capital and is expected to be completed by the end of the third quarter of FY26. It will be subject to approval from the Australian Competition and Consumer Commission and other customary conditions.
According to a statement by Medibank, the acquisition aligns with Medibank’s strategy to expand in health and supports their goal of at least $200 million in Medibank Health segment profit and $700 million capital employed by FY30.
Medibank said it expects Better Medical to deliver EBITDA of around $6 million for the six months ending 30 June 2026.
The acquisition complements Medibank’s majority interest in Myhealth Medical Group, which has 105 primary care clinics, Medibank said.
