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HCF to merge with rt Health
Global law firm King & Wood Mallesons (KWM) has advised The Hospitals Contribution Fund of Australia Limited (HCF) on its proposed merger with Railway & Transport Health Fund Limited (rt Health).
Emma Musgrave
Firms: King & Wood Mallesons (HCF); Undisclosed (rt Health).
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Deal: HCF and rt Health has entered into a proposed merger, which remains subject to conditions, including approval from the Australian Prudential Regulation Authority (APRA).
Value: Undisclosed.
Area: M&A.
Key players: The legal team advising HCF was led by King & Wood Mallesons partner Rhys Casey, with assistance from senior associate Mitch Fairbairn and solicitor Caroline Paskevich.
Deal significance: According to a statement from King & Wood Mallesons, if approved, this merger 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 firm explained.
Commenting further on the deal, lead partner 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”.
