GMHBA Limited is a

not-for-profit A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...

, mutual Australian private health insurance and care company founded in 1934, based in

Geelong, Victoria Geelong ( ) ( Wathawurrung: ''Djilang''/''Djalang'') is a port city in the south eastern Australian state of Victoria, located at the eastern end of Corio Bay (the smaller western portion of Port Phillip Bay) and the left bank of Barwon ...

Australia Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. With an area of , Australia is the largest country by ...

. GMHBA also operates eye care and dental care practices along with GP clinics.

History

GMHBA has roots in the Cement Workers Hospital Benefits Scheme, established in 1927 by workers at the cement works at

Fyansford Fyansford is a township on the western edge of Geelong, Victoria, Australia, named after Captain Foster Fyans who came to Geelong as a Police magistrate in October, 1837. It is located at the junction of the Barwon and Moorabool rivers. At th ...

, on the outskirts of Geelong. By 1928 a number of similar schemes had been started for employees of other local industrial organisations. An open health fund was officially launched and opened to the public by the mayor of Geelong on 13 August 1934. The name Geelong Medical and Hospital Benefits Association (GMHBA) was adopted in 1958. In October 2009 GMHBA launched a second brand called Frank Health Insurance, which was developed to provide a simple private health insurance offering at low cost.

NIB takeover bid

In October 2010

Newcastle, New South Wales Newcastle ( ; Awabakal: ) is a metropolitan area and the second most populated city in the state of New South Wales, Australia. It includes the Newcastle and Lake Macquarie local government areas, and is the hub of the Greater Newcastle area ...

based health fund NIB made a $140 million takeover offer to GMHBA members. The company went public with the offer, after the GMHBA board rejected their initial offer and refused to enter into discussions. NIB was Australia's first health fund to

demutualise Demutualization is the process by which a customer-owned mutual organization (''mutual'') or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, membe ...

, listing on the stock exchange in 2007. The takeover would give members an average of $1500 tax free, with some receiving as much as $6500. NIB chief Mark Fitzgibbon admitted that his company's $4 million sponsorship of the

Geelong Football Club The Geelong Football Club, nicknamed the Cats, is a professional Australian rules football club based in Geelong, Victoria, Australia. The club competes in the Australian Football League (AFL), the sport's premier competition, and are the 20 ...

and the Lorne Pier to Pub swimming race was part of a long-term strategy to win support of Geelong locals. He also said that he intended to recruit a number of local celebrities, including GFC president Frank Costa and sports broadcaster Billy Brownless, to pressure GMHBA directors into calling a vote. GMHBA chief Ken Jarvis criticised the actions of NIB, saying his company makes a $15 million a year contribution to the Geelong economy and supported local charities. The initial $140 million offer was later increased to $161 million, and then to $180 million, before it was withdrawn by NIB in December 2010, after the GMHBA board still refused to consider the offer.

References

{{reflist

External links

Part of Members Own Health Funds

GMHBA Health Insurance

Frank Health Insurance

Private Health – the Australian Federal Government's Private Health Insurance web site
* Private Health Insurance Ombudsman Financial services companies established in 1934 Insurance companies of Australia Health insurance in Australia 1934 establishments in Australia