The NIB Holdings Limited (ASX: NHF) share price could be one to watch after revealing its latest NDIS-related acquisition.
NIB is one of the largest private health insurers in Australia. But, it’s looking to expand in a number of different ways.
The health manager explained that the NDIS is a national scheme that supports Australians from 7 to 65 years of age, who have a disability. It provides funding for support and services for people who need help. Plan managers help participants get the most from their plan, from budgeting to maximising services and linking users with a network of providers.
NIB’s newest NDIS acquisition
The company announced that it has completed the acquisition of Brisbane-based Connect Plan Management to increase its exposure to the National Disability Insurance Scheme (NDIS).
It also revealed it has entered into an agreement with plan manager All Disability Plan Management business, based in Port Macquarie. NIB explained that All Disability provdes service to around 3,000 participants.
The All Disability acquisition is expected to be completed during FY23. When this is completed, it will increase the number of NDIS businesses that will sit under the NIB ‘Thrive’ banner. NIB is also considering further acquisitions.
NIB has acquired Connect (4,400 NDIS participants), Maple Plan and Peak Plan Management (11,000 NDIS participants).
NIB is hoping that Thrive will manage plans for 50,000 NDIS participants by FY25.
Management commentary
The NIB CEO and Managing Director Mark Fitzgibbon said:
We are full of conviction about how we might play a role in an even better experience for participants and providers of disability supports.
The NIB Thrive CEO Martin Adlington said each of the four plan managers has shown very high levels of care for participants. Mr Adlington said:
They each have a dedicated and committed workforce.
For us at nib Thrive, it will be business as usual. Participants can expect the same high level of care they have seen to date from each of their plan managers.
Final thoughts on the NIB share price
I think this move by NIB makes a lot of sense – the NDIS program is dealing with many billions of dollars, so it’d make sense that NIB would want a piece of that.
I’m not sure how much earnings NIB will generate from this segment, but it’s rapidly scaling and also removing competition from the space.
After the recent fall of the NIB share price, I’d call it a long-term buy at these levels.
