King & Wood Mallesons (KWM) has supported The Hospitals Contribution Fund of Australia Limited (HCF) on its announced merger with Railway & Transport Health Fund Limited (rt Health).
The proposed merger remains subject to certain conditions - including Australian Prudential Regulation Authority approval. If approved, it will be amongst the first of its kind between not-for-profit mutual private health insurers under the Private Health Insurance (Prudential Supervision) Act 2015 (Cth) (PHIPS Act).
The merger will principally involve rt Health's policyholders being transferred to the fund conducted by HCF pursuant to, amongst other arrangements, the statutory transfer process in the PHIPS Act and is expected to yield several opportunities and benefits for the members of each fund, including more competitive pricing and greater clinical coverage.
The core KWM team was led by Rhys Casey (Partner), supported by Mitch Fairbairn (Senior Associate) and Caroline Paskevich (Solicitor).
Commenting on the deal, Rhys Casey said:
"This is an exciting deal for HCF and for the not-for-profit mutual industry more broadly. Not-for-profit health insurers play a valuable role and have a longstanding history in the sector. HCF is proud of its 90-year legacy and the merger is another important milestone as it looks to the future."
KWM is a leading adviser in the financial services and mutual sectors and has been able to support HCF to reach this significant milestone.
