Western Australia's dominant health fund HBF has dismissed speculation about a merger with UK-owned Bupa to create the nation's biggest health insurer.
HBF denied the rumour yesterday when it was put the group by WA Business News and managing director Rob Bransby told staff today in an internal memo that speculation on the same subject published in a national newspaper was wrong.
"I want to make it absolutely clear to you that this (speculation) is nonsense," Mr Bransby said.
"I have stated on many occasions that I am absolutely committed to HBF remaining a not-for-profit, proudly Western Australian health fund which places its members first.
"That has been our heritage for the past 70 years and it has served Western Australians very well. The HBF Board recently met for its annual planning day and clearly reaffirmed that HBF's future remains as a not-for-profit health fund.
"Given the current activity in the health insurance sector (some of you will know that NIB are seeking to take over the not for profit health fund GMHBA) it's probably not surprising that there is speculation about other 'deals' within the industry.
"That said, it's telling that this morning's story is in the gossip section of the AFR - because gossip is all it is," he said.
HBF has 62 per cent of the WA health insurance market.
In its 2010-11 annual report HBF reported the company had 862,918 members.
