Essays on Privatisation of Medibank by the Government Case Study

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The paper "Privatisation of Medibank by the Government" is a perfect example of a marketing case study. The health of the people of Australian has been the priority of the government. This led to the development of Medibank which has the responsibility of providing health insurance to the people of Australia. Medibank provides health insurance schemes to its members. Medibank was established in the year 1976 and it struggles to provide better quality services to improve the insurance issues of the people of Australia. The main aim of Medibank is to ensure quality health of the people through insurance by helping the people to make better choices, be confident and get better outcomes.

This is achieved because of Medibank advocates for improved health systems (Medibank 2013, p. 1). In the year 2013, the government of Australia announced that it will sale Medibank to private investors. This essay will, therefore, discuss that Medibank should be privatized and will also provide an overview of why it should not be privatized. There is that section of the government which advocates for the privatization of Medibank.

It is argued that privatization of Medibank will lead to improved and efficient private insurance which can be viable to all people (Mathias 2014). They argue that there will be quality and competent services which can be provided as a result of privatization of Medibank hence there is the need for privatizing Medibank because it will help to provide quality services. It is also argued that privatization of Medibank will help to maintain quality services to both private customers who include the regional customers and the customers in rural areas (Bortolotti & Faccio 2007).

This is one way in which the health schemes of all people regardless of their geographical location will be upheld. In this regard, the health systems will be fair to all people without any discrimination. In addition, it is argued that privatization of Medibank could help it to operate in a privately competitive market like any other competitors. This is because Medibank has been operating in a commercial, unlike other competitors who are privately owned (Stephene 2014). In this regard, privatizing Medibank would enable it to compete effectively with other private competitors and the end result is that there will be better services which are provided to the members of the health insurance. The sale of Medibank to private management will also help to ensure that the employees of the Medibank are treated in a fair manner.

Privatization of Medibank will ensure that the employees are treated equally and they will be entitled to accrued benefits which they don’ t enjoy currently (Mathias Cormann 2014). In this effect, it is argued that the employs will be motivated better and improve their wellbeing as well as the quality of services they offer to their members.

In turn, this will help to improve the quality of health systems offered by Medibank (Chong & Galdo 2002, p. 14). In addition, there is the case for selling Medibank. It is argued that Medibank would raise about $ 4.5 million if can be privatized as opposed to $1.6 when it is not privatized. This implies that it is a good idea to privatize Medibank since it could help to generate more revenue (Ian 2013).

With the increased revenues, the shareholders will be able to get reasonable dividends unlike when Medibank is commercially owned. In this effect, it will help to operate within the available budget and will improve its performance.


American Chamber of Commerce in Japan (2004). “Applying Global Best Practices to Privatization in Japan”, Report by the Privatization Task Force, New York: New Press.

Bortolotti, B & Pinotti, P. (2003). “The Political Economy of Privatization”, FEEM Working Paper No. 45, Philadelphia: Temple University Press,

Bortolotti, B & Faccio. M. (2007). “Government Control of Privatized Firms”, mimeo. Princeton, NJ: Princeton University Press

Carmacho, F. (2008). “The role of incumbent board and management in the privatization process”, paper prepared for the OECD Working Group on Privatization and Corporate Governance of State Owned Assets, University of Queensland.

Chong, A & V. Galdo. V. (2002). “Streamlining and Privatization Prices in the Telecommunications Industry”, Working Paper, Inter American Development Bank, New York: New Press.

Chong, A & Lopezde, F. S. (2002), “Privatization and Labour Force Restructuring around the World”, Working Paper, Yale University.

Heath, A. (2014). Federal politics, For sale: Medibank readied for $4b, float-20140211-32g3d.html

Ian, M. (2013). Why privatizing Medibank is good policy, retrieved on 29th April from privatising-medibank-good-policy

Mathias C. (2014). Joint Lead Managers Appointed for Median Private Sale, retrieved on 29th April 2014 from

Medibank (2013). About us, retrieved on 29th April 2014 from

Stephen,B. (2014). Conspiracyoz retrieved from and-australia-post-are-candidates-for-privatisation/

The guardian (2013). Is selling Medibank a good idea, it remains to be seen, idea-it-remains-to-be-seen.

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