| Publication: | Illawarramercury.com.au |
|---|---|
| Date: | 17 July 2008 |
| Section: | News |
The directors of Wollongong-based ahm are pushing for a takeover of the health fund by the much larger Medibank Private despite a survey of members two years ago which found 65 per cent were against demutualisation of any kind.
On Monday, ahm and Medibank Private began a process which, if approved by ahm members, would see the Federal Government-owned Medibank acquire ahm for $367 million and form Australia's largest insurer.
The Mercury can reveal consultation of members conducted by a independent research company in 2006 "indicated a strong preference for ahm remaining a not-for-profit mutual".
In ahm's 2007 annual report, then board chairman Michael McMahon wrote that the poll of members found "65 per cent were against demutualisation regardless of what form it took, with the major reason given that the company would be run for the benefit of shareholders rather than members and it was felt that this was likely to affect premiums and service levels".
"... members expressed the view that a mutual organisation is the appropriate status for a company delivering products and services related to personal health," Mr McMahon, now deputy chairman, wrote.
Following Monday's announcement, members of ahm will be asked to vote on demutualisation, and then the Medibank Private takeover, from November.
