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,

Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...

. 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, 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, w ...

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, memb ...

, 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 2022 ...

and the Lorne

Pier to Pub The Lorne Pier to Pub is an annual, 1.2-km open water swimming race held in January at Lorne, a town located on the Great Ocean Road in Victoria, Australia. It began in 1981, when a member of the Lorne Surf Lifesaving Club, the Late Paul Lacey, ...

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 Frank Aloysius Costa (3 February 1938 – 2 May 2021) was an Australian businessman. Costa had been a prominent figure in the Geelong region for more than four decades after inheriting Costa Group, the family's produce business, in the late 1 ...

and sports broadcaster

Billy Brownless Anthony William Brownless (born 28 January 1967) is a former Australian rules footballer and radio and television media personality who represented in the Australian Football League (AFL) during the 1980s and 1990s. Early life Brownless was ...

, 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
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Private Health Insurance Ombudsman The Private Health Insurance Ombudsman was an Australian Government agency which acted independently of the government in investigating complaints involving private health insurance and reporting. The role and functions of the office are contained ...

Financial services companies established in 1934 Insurance companies of Australia Health insurance in Australia 1934 establishments in Australia