Medibank May Benefit From Surgery Business Investment

Australian private-health insurer Medibank’s new no-gap, short stay surgery business should drive industry efficiencies and strong earnings per share growth, says Morgan Stanley. Medibank has so far invested A$200 million into healthcare businesses and the appeal of its strategy looks under appreciated by investors, the investment bank says. Medibank’s stock may in fact warrant a premium as its healthcare presence grows. Rival health insurer Nib and healthcare provider Ramsay Health Care are trying to develop the same approach, but are at an earlier stage than Medibank, Morgan Stanley says. (alice.uribe@wsj.com)

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