Medibank share price hits 52-week high on US tech partnership

This private health insurer's shares are scaling new heights today. But why?

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The Medibank Private Ltd (ASX: MPL) share price is outperforming nicely on Tuesday.

In afternoon trade, the private health insurer's shares are up 2.5% to a 52-week high of $3.89.

This compares favourably to the ASX 200 index, which is down 0.15% at present.

Why is the Medibank share price pushing higher?

Investors appear to have been buying the company's shares today in response to news of a new partnership.

According to the release, the company's Amplar Health business has partnered with Amwell, a US-based leader in healthcare technology, to support the delivery of its prevention programs at scale in Australia.

The company notes that this partnership will fast track digital health solutions to support more Australians at risk of chronic disease.

Amplar Health's Group Lead, Robert Read, points out that the prevalence of preventable chronic disease continues to rise and costs the Australian healthcare system billions. He explains:

The top 10 chronic conditions in Australia contributed to 89% of deaths in 2021, and 66% of the total burden of disease. We need a range of solutions to improve the health of Australians. Tools that provide information in a digestible and timely way can improve health literacy and health outcomes.

Read believes that virtual options could be the solution to the problem. He adds:

Virtual solutions that allow individuals to set personal health goals, make positive lifestyle changes and sustain those changes over time are crucial to the sustainability of the broader health system.

Hospital admissions arising from preventable disease continue to climb, putting hospitals under pressure and risking poor outcomes for patients. We need to be smarter about healthcare delivery and embrace technology to enable widespread access to preventative programs across our communities.

Shareholders will no doubt be hoping that the Medibank share price builds on this and reaches a new high on Thursday when the company releases its half-year results. Stay tuned for that.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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