Imagine a world where your health insurer doesn’t just pay for your physio, GP, or mental health consult — it owns the clinic, hires the doctor, and decides how your care is delivered.

That’s not a future scenario. It’s happening right now in Australia.

In a sweeping wave of acquisitions, major health insurers like Medibank, Bupa, and Australian Unity are buying up allied health companies, general practices, and in-home care services. They’re building end-to-end healthcare ecosystems — and locking consumers and providers inside.

It’s called vertical integration, and it’s changing Australian healthcare from the inside out.

The Fast-Moving Trend No One’s Talking About

Australian Unity Buys Plena Healthcare

In February 2025, Australian Unity announced it would acquire Plena Healthcare for $70 million — one of the country’s largest in-home allied health providers, with over 1,300 clinicians. Plena provides physio, OT, speech therapy and more to aged-care homes and private clients.

This move puts Australian Unity directly in control of clinical delivery — not just the insurance behind it.

Medibank’s Healthcare Empire Is Growing Fast

Medibank isn’t just an insurer anymore. Through its Amplar Health brand, it now owns:

• HealthStrong (now Amplar Allied Health) — acquired 2017
• Home Support Services (HSS) — now Amplar Home Health
• Pinnacle Health Group — acquired 2024, offers corporate wellness services
• Amplar Home Hospital — delivering acute-level care at home

These services span everything from in-home nursing and physio to post-op rehab and employer wellness programs.

Bupa’s Quiet March Into General Practice

According to The Medical Republic, Bupa plans to own 130 GP clinics within three years — starting with 40 clinics by the end of 2025. Its ambition? To deliver 30% of all member healthcare within its own walls.

Doctors and peak bodies like the RACGP and AMA are raising red flags. This level of control risks creating a US-style system where insurers influence treatment decisions — and limit independent medical practice.

“When your fund owns your GP, your physio, your dentist — whose interests come first? Yours, or theirs?”

What’s the Problem? Vertical Integration Sounds Efficient…

At first glance, this model seems attractive. More convenience. Fewer admin headaches. Potentially lower costs. So what’s the problem?

1. Choice Disappears

When insurers own the clinics, they steer patients toward their own services with:

• Bigger rebates
• Priority access
• Integrated appointment systems

Suddenly, independent providers can’t compete. Your “freedom of choice” becomes a shrinking list of in-network, fund-owned options.

2. Prices May Go Up in the Long Run

Short term: You might pay less for a consult.
Long term: When competition dies, prices and premiums rise — and out-of-network rebates shrink.

With funds controlling both the price of care and its delivery, consumers are left in the dark.

3. Small Clinics Are Being Squeezed Out

Independent physios, psychologists, GPs, and podiatrists are under increasing pressure:

• Losing patient referrals
• Forced into unfavourable rebate contracts
• Pushed to sell or close shop entirely

This consolidation threatens the diverse, community-based care system Australians rely on — especially in rural and regional areas.

4. Doctor Independence Is at Risk

The expansion into general practice by Bupa is particularly concerning.

“Insurers owning GPs is a massive red flag. Doctors are being asked to serve two masters — the patient and the fund.”
— Dr. Nicole Higgins, RACGP President

Insurers want data, cost control, and efficiency. Doctors want to provide best-practice care. These aren’t always aligned.

Why It’s Happening Now

• Revenue diversification: Insurers are trying to control rising claim costs by owning the services they fund.
• Policy vacuum: There’s no strong regulatory framework governing how much care insurers can own.
• Data advantage: When funds control your health data and your healthcare provider, they can shape decisions — even subtly.

It’s a slow shift — but one with huge implications.

What Needs to Happen

For Policymakers & Regulators:

• The ACCC must investigate whether vertical integration is reducing competition and consumer choice.
• Transparency laws should require funds to disclose rebate differences between owned and non-owned clinics.
• Protection for independent clinics is needed to keep community care viable — especially in aged care and rural health.

For Consumers:

• Ask questions: Is your insurer recommending their own clinic? Are you getting a fair deal?
• Support independent providers: Choose based on quality and values — not just who offers the fastest booking.
• Push back on steering: Use your voice to demand genuine choice in your cover.

For Providers:

• Join alliances or cooperatives to strengthen bargaining power
• Focus on community engagement, word-of-mouth, and quality care
• Advocate for fairer contracts and policy protections

We’re at a Fork in the Road

If left unchecked, Australia risks drifting toward a US-style managed care system — where insurers don’t just cover your health, they own it. That might be good for investor returns.

But it’s rarely good for patients. Healthcare should be about people — not profit pipelines. The time to act is now, before independence, transparency, and choice disappear.