Medibank, Calvary sign new deal after row

After months of negotiations Medibank and Calvary have declared a truce, announcing they've signed a new three-year agreement from Monday.

Medibank Private has lifted first half profit 58.3 per cent to $227.6 million. (AAP)

Medibank customers have more certainty after the private health insurer signed a new three-year agreement with Calvary Health Care.

The old contract between the pair was due to expire on Monday, but after months of bitter dispute the parties came to a truce.

Both admitted they went through a robust and challenging negotiation to get to the new contract, of which details are confidential.

Federal Health Minister Sussan Ley welcomed the agreement, hoping it means business as usual for patients.