The Medibank Private Ltd (ASX: MPL) share price is making little headway today. It is currently flat at $3.21 having earlier jumped to $3.25.
For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1.15% at the time of writing.
However, there is an interesting piece of news out of Medibank today. The private health insurance company has announced a new multi-million investment in a health technology company.
Let's take a look.
Virtual health investment
Medibank has invested $10 million in the health technology company Medinet. The aim is to support the increasing role of virtual health in Australia.
Medinet is a digital platform providing patients with access to doctors online via video, audio, and chat. The platform was launched in 2019 and is being used in some GP clinics in Australia. The app is within the top five healthcare apps downloaded in the country.
Commenting on the investment, Medibank Group Executive – CEO Health Services Dr Andrew Wilson said:
People are looking for the same level of choice and convenience in their healthcare that they get in other parts of their lives. The COVID pandemic has accelerated the use and acceptance of technology-enabled healthcare, with recent research showing that 70% of Australians are willing to use virtual healthcare services.
Medinet's platform supports this by giving patients the ability to make an appointment and connect with a GP virtually, to access scripts and referrals generated during the consult, and to have their medication delivered straight to their home.
Credit Suisse has recently rated the Medibank share price as a "buy" with a $3.50 price target. Medibank increased operating profit by 12.3% in the first half of FY22, while net profit after tax (NPAT) descended 2.7%. Policyholder numbers climbed 1.5% in the half while jumping 3.3% in 12 months.
On March 24, Medibank will pay a dividend of 6.1 cents per share.
Medibank share price recap
The Medibank share price has climbed 10% in the past 12 months, but it has fallen 4% year to date.
For perspective, the benchmark ASX 200 index has leapt 7% in the past 52 weeks.
In the past month, Medibank shares are in the red by 0.3% but they have jumped by 5% in the past week.
Medibank has a market capitalisation of about $8.9 billion based on its current share price.
