Medibank has lost a defence contract, and its shares are tanking

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  • Medibank says it has been verbally informed that it hasn’t been re-awarded a defence contract.
  • The operating profit from the Garrison Health Services contract is about $30 million.
  • The current contract ends in June 2019.

Shares in Medibank are lower today after the health insurer announced it had lost a contract with the Department of Defence.

A short time ago, the shares were down 8.6% to $2.53.

Medibank says it has been told verbally that it has not been selected as the preferred tenderer for the renewal of the Garrison Health Services contract.

“It has been a privilege to provide healthcare services to the Australian Defence Force (ADF) for the last six years,” the company said in a statement.

“During this time, Medibank has provided a high level of care to more than 60,000 permanent and 20,000 reservist ADF personnel.”

Medibank says it will continue services under the current contract until June 2019.

The operating profit from the Garrison Health Services contract in 2018 was $30 million.

Medibank in August posted a full year profit of 445.1 million, down 1%.

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