Australia's Federal Court has ruled that Medibank Private Ltd. did not mislead or deceive its customers with regard to changes to arrangements with some in-hospital diagnostic service providers in 2014.

The Australian Competition and Consumer Commission did not get a favorable ruling in a similar court case in 2017.

However, the country's Department of Defence did not renew Medibank for the Garrison Health Services contract, which provides healthcare services to the Australian Defence Force. The company said the contract generated approximately A$30 million in operating profit for the 2018 financial year. Medibank expects exit costs of A$5 million in the second half of the 2019 financial year.