Medibank Private (ASX: MPL) loses Government contract
Stock
Medibank Private (ASX: MPL) $2.61 as at 19/11/2018
Event
Medibank Private (ASX: MPL) stopped trading for a short period this morning to announce to the market that they had lost a key Government contract.
The company had been informed that the Department of Defence would not be renewing Medibank as the healthcare provider for the ADF.
Since 2012, Medibank had delivered health services to the 80,000+ members of the ADF through Garrison Health Services (GHS).
In the FY18 result, the GHS contract added around $30m to pre-tax profit, or a tick under 5% of the group total.
The company expects $5m in exit costs, but no longer term impacts following the contract coming to an end in June of next year.
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