Medibank In Bid For Ahm
Illawarra Mercury
Friday June 13, 2008
AUSTRALIA'S largest health insurer Medibank Private has made a bid to buy Wollongong-based health insurer ahm, both companies announced last night.
Neither would say what price had been put on ahm's head, but the Mercury understands it is expected to be between $300 million and $350 million.Medibank's managing director George Savvides said consolidating the two companies would extend their capability to offer preventative and chronic disease management services to their members."We see this as a huge positive for the members of both funds," Mr Savvides said."Medibank believes that for private health insurance to be sustainable long term, funds must move from a reactive posture to a prevention and health management capability that better assists members to improved health outcomes and at the same time lowers the health costs on the fund."A spokesman for ahm said it was presently assessing the proposal, which includes a cash payment to eligible ahm members."Any decision to enter into an agreement with Medibank will only be taken by ahm's board if the directors conclude the proposal is in the best interests of its members," the spokesman said. Mr Savvides was "enthusiastic" about the future of ahm's Wollongong operations. "Ahm health management's expertise resides in its Wollongong staff, and our aim is to build on that knowledge base," Mr Savvides said.Medibank has nearly three million members and represents a 30 per cent stake in the health insurance market, with a premium revenue of about $3.1 billion for the 2007 financial year. Wollongong-based ahm is the eighth largest health insurer in Australia with about 250,000 members and made $330 million in premium revenue for the 2007 financial year.
© 2008 Illawarra Mercury
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