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NIB share price higher after announcing joint venture with Cigna Corp

The NIB Holdings Limited (ASX: NHF) share price is pushing higher following the release of a joint venture announcement.

At the time of writing the private health insurer’s shares are up over 1% to $6.61.

What did NIB announce?

This morning nib announced the creation of a specialist healthcare data science and services company.

According to the release, the new company has the specific purpose of delivering better health outcomes for members and communities.

The healthcare data science and services company will be a joint venture initiative between nib and global health services giant Cigna Corporation. Both parties will contribute A$10 million in start-up funding.

The joint venture will operate independently of nib and be led by Rhod McKensey. He has been group executive of nib’s Australian Residents Health Insurance (arhi) business since 2013.

Mr McKensey will be replaced by head of arhi Marketing and Products, Ed Close.

What will the joint venture do?

The release explains that the joint venture’s purpose is to analyse and interpret underlying individual disease risk.

It will then provide guidance on how this risk can be best prevented, mitigated, managed or treated. After which, it will deliver healthcare programs, services and interventions relevant to the disease risk profile.

It will initially commence with companies within the nib Group. But in time, it is expected to partner with other healthcare insurers and providers to improve health outcomes for communities across Australia and New Zealand.

nib managing director, Mark Fitzgibbon, revealed that this joint venture is the result of several years of research and preparation.

He said: “Today’s announcement shouldn’t be a surprise to anyone familiar with our business and vision of becoming as much about our member’s good health as it is their financial protection. It’s a giant step in our ambitions to play a more substantive and cost effective role in healthcare. As a business we’re determined to help our members, in collaboration with their doctors, keep healthy rather than simply be there for them when they’re already sick or injured.”

“And with over 740,000 avoidable hospital admissions1 in Australia every year, representing approximately 7% of all hospitalisations, we think there’s an enormous role for the joint venture to play,” he added.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.