Essays on Should the Australian Government Privatize Medibank Case Study

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The paper "Should the Australian Government Privatize Medibank" is a perfect example of a business case study.   There are various arguments and suggestions that are offered towards the proposal of the Australian government to privatize Medibank. Some researchers, politicians and citizens of Australia have divided perceptions towards the move of the government, with some supporting the decision, while others finding the decision as unfair and unjust. The proposal has led to debates about the advantages associated with privatizing the Medibank organization but the major issue that has been in consideration from the government officials supporting the action is how the governments in Australia can increase the price or returns they get from the organizations and enterprises they decide to sell. In making a varied conclusion on whether the government of Australia should privatize Medibank or not, it is essential to consider some of the merits the government accrues from the sales.

Additionally, it is important to evaluate the impact of the sale of the organization to private sectors to the common citizens in terms of service delivery, accessibility and cost. It is also important to analyze some of the possible ways that can be used to sell the organization as a way of creating a better understanding of the possible outcomes from the sale.

Lastly, it will be of great significance to consider the functionality of Medibank, and the benefits people accrue from the services and products that the organization offers to them. An evidence-based and concrete conclusion with therefore is developed on whether to support or oppose the government’ s proposal of selling Medibank to the private sector. Medibank is a government-owned private health institution that offers insurance services to the public and is considered the largest Australian health insurance provider in the sense that it has more than 3.6 million members.

This membership is evident to account for approximately 30% of the Australian market, and this makes the organization a fundamental organization not only in the provision of the health insurance services but also in the enhancement of the economy of Australia. It was established in 1975 to offer competition to the private organizations that offered health insurance for-profit and have operated as a state business enterprise in the sense that from 2009, the firm has been operating as a commercialized business (Chowdhury, 2006).

This follows the observation that it has been paying tax and dividends just as other health insurance organizations in Australia. It has highly regulated premiums as a way of ensuring that the returns that the organization makes from the services and medical or health funds it offers to the clients are well utilized not only in expanding its operations but in reaching people from marginalized regions of Australia (Packham, 2006: 5). Privatization proposals for Medibank were initiated by Howard Liberal Government which proposed that in case it was re-elected in 2007, it would privatize Medibank Private.

However, the Labor Party policy stood on the regulation that Medibank should always be maintained as a Government Business Enterprise (GBE). As the chairman of the firm, Paul McClintock confirmed the need to privatize the firm when he was retiring, the then Finance Minister Penny Wong declined the suggestion stating that the Government has no plans to sell the organization to private sectors.


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