The Hospitals Contribution Fund of Australia, commonly referred to as HCF, is an Australian private health insurer headquartered in Sydney, New South Wales. Founded in 1932, it has grown to become one of the country's largest combined registered private health fund and life insurance company. HCF is the third-largest health insurance company by market share, and is the largest not-for-profit health fund in Australia.
HCF provides private health insurance cover for a full range of health cover including pet insurance, travel insurance and life insurance.
History
In 1893, the Hospitals Saturday Fund of NSW (HSF) was establishedThe Sydney Morning Herald, Monday 23 April 1928 http://nla.gov.au/nla.news-article16458988 by Frank GrimleyAustralian Dictionary of Biography, Online Edition, http://adbonline.anu.edu.au/biogs/A090119b.htm to serve this purpose. Money was raised by conducting a one-day-a-year drive to collect funds from the public and from businesses. These collections were then distributed among participating hospitals. In 1900, HSF introduced individual subscription hospital insurance, where contributors and their families paid a regular weekly sum to the fund.
The early years 1932–1942
In 1932, following negotiations between the Hospital Saturday Fund (HSF) and a newly created Hospital Commission of New South Wales, a new fund was created to better serve the community. The new fund – called the Metropolitan Hospitals Contribution Fund (MHCF) – was launched on 16 June 1932, with the Lord Mayor (Ald. S. Walder) presiding.The Sydney Morning Herald, Thursday 16 June 1932 http://nla.gov.au/nla.news-article16899749The Argus (Melbourne, Vic) Tuesday 10 July 1945 http://nla.gov.au/nla.news-article966391
The fund's first office was established on the first floor of Adyar House (later the Savoy Building and now demolished) in Bligh Street. At the end of the first two years of operations, it had enrolled more than 100,000 contributors drawn from 3,290 employment groups and some 5,000 honorary agents, although its area of operations was confined to about around the City of Sydney. Contributions were 6d. a week (family) and 3d. a week (single). Benefits paid for hospitalisation in participating hospitals were £2/9/- per week.The Sydney Morning Herald, Friday 10 January 1936 http://nla.gov.au/nla.news-article36210157
Further rapid growth in the Fund's business led to a need for more accommodation and, in December 1934, the Fund removed to offices on the fourth floor of the new Asbestos House in York Street, Sydney. By 30 June 1935, the fund had 156,230 contributors on record.The Sydney Morning Herald, Thursday 19 September 1935 http://nla.gov.au/nla.news-article29538376 The opening of additional offices on the ground floor of the same building in 1937 set the pattern for HCF's contributor services offices.
In 1941, HCF moved to its first "home-of-its-own" in Hamilton Street. This building, duly named MHCF House, has now long since been demolished to make way for yet another high rise development in Sydney's booming commercial area. The purchase of its own offices was a forerunner to the conclusion of the Fund's first decade of operations during which the original staff of 10 increased to 75 and annual revenue had grown from £31,757 at 30 June 1933The Sydney Morning Herald, Tuesday 10 July 1945 http://nla.gov.au/nla.news-article17946561 to £364,180 at 30 June 1942.Annual report for the year ended 30 June 1942 - Metropolitan Hospitals Contribution Fund of New South Wales
The war years and beyond 1942–1952
The 1942–52 decade of the Fund's development began at the height of the World War II. During these years MHCF House was never left unattended, day or night, in compliance with National Emergency Services regulations. An air raid shelter was built in the basement and the entire male staff of 24 was formed into a voluntary patrol to protect the building. On the night of 7 June 1942 when Japanese submarines shelled Sydney, a contributor in Bellevue Hill was struck by a shell fragment and admitted to St Vincent's Hospital. In due course a claim (No. H711683) was paid in respect of this injury.HCF Annual Review 1982 - Page 3 'The Growing Years'
Despite many difficulties of the World War II years, including the severe drain on manpower resources and the cessation of many employment groups, the Fund's revenues continued to grow, indicating the high value now placed by the community on an equitable and efficient hospital insurance system. By 30 June 1945, it had an income of £440,000. In 1945, the Fund extended its area of operations to cover the whole of New South Wales. In 1946, due approval was obtained from the State Government and the name of the Fund was changed to the Hospitals Contribution Fund of NSW. A scheme for a medical benefits fund, to provide insurance against the costs of medical services, had been envisaged by then MHCF and members of the medical profession in 1939 but had been deferred because of the war. However, in 1947, under the sponsorship of the medical profession, the Medical Benefits Fund of Australia (MBF) was formed, The well-established HCF accepted its invitation to be managing agents for the new fund.The Sydney Morning Herald, Thursday 31 July 1947 http://nla.gov.au/nla.news-article18037660The Canberra Times, Tuesday 19 August 1947 http://nla.gov.au/nla.news-article2722911
By early 1947, HCF's annual income was well past the £500,000 mark and its cover extended to more than 1,250,000 people in NSW. To accommodate continued rapid growth, HCF purchased the Catton Building at 199 Liverpool Street, in January 1950.The Sydney Morning Herald, Wednesday 21 June 1950 http://nla.gov.au/nla.news-article18164227 Meanwhile, in 1952, income had risen to £671,633 – a twenty-fold increase in 20 years – and grants to public hospitals and medical charities exceeded £100,000 for the year.Annual report for the year ended 30 June 1952 - Metropolitan Hospitals Contribution Fund of New South Wales
The years of Commonwealth support 1952–1962
The introduction of the National Health Scheme by the Commonwealth Minister for Health (Sir Earle Page) in 1952 marked the beginning of a new era for health insurance in Australia. Previously conducted on a private basis, voluntary health insurance funds were now required to be registered under the National Health Act in order to pay the additional benefits now provided by the Commonwealth.The West Australian, Wednesday 2 January 1952 http://nla.gov.au/nla.news-article49008301 HCF decided to seek registration under the Act, which was duly granted and the Fund's total disbursements of the Commonwealth hospital benefit of 4/- a dayThe West Australian, Tuesday 1 January 1952 http://nla.gov.au/nla.news-article49007958The Canberra Times, Tuesday 12 August 1952 http://nla.gov.au/nla.news-article2861589 from 1 January 1952 (the start of the Scheme) to 30 June 1952 amount to £34,073.
In 1953, following increases in hospital charges,The Canberra Times, Wednesday 2 April 1952 http://nla.gov.au/nla.news-article2852063 the HCF family contribution rate was raised to 3/- a week which provided for a weekly hospital benefits of £12/12/- and the age limit on membership was abolished. In 1957, at the end of 25 years' operations, HCF celebrated its silver anniversary with benefit payments for the year amounting to £3,170,408. By 1962, after 30 years of service, total benefits paid were £9,202,720.Annual report for the year ended 30 June 1962 - Metropolitan Hospitals Contribution Fund of New South Wales
The growing years 1962–1972
The commencement of HCF's fourth decade saw a major expansion of the Fund's activities. The decision was taken to end the joint management arrangements with the MBF which had begun in 1960,MBF Information Memorandum 20 March 2008. The Sydney Morning Herald Friday, 2 November 1962 https://news.google.com/newspapers?id=tocVAAAAIBAJ&sjid=OuYDAAAAIBAJ&pg=7306,211187 when HCF staff had moved to the MBF premises in George Street. As a consequence of increased competition, the fund extended its operations to include medical benefits after the Government approval.The Sydney Morning Herald Monday 14 October 1963 https://news.google.com/newspapers?id=w4NWAAAAIBAJ&sjid=wuUDAAAAIBAJ&pg=5862,3992641 On 1 November 1963, HCF resumed independent operations from 199 Liverpool Street and launched its combined medical and hospital benefits plan.
In 1964 HCF upgraded its administrative procedures by installation of its own computer and introduced electronic data processing as an integral part of its operations. The Fund continued to expand its branch network throughout metropolitan and country areas. It waived, at its own expense, transfer conditions when higher hospital tables were introduced.
In 1965, HCF extended its operations to Victoria as part of a plan to assist Fund contributors throughout Australia. New hospital tables were introduced. Branch transactions became a larger part of HCF's business, with three out of every five claims being presented over the counter at metropolitan and country branches.
By 1967, HCF had changed its name to the Hospitals Contribution Fund of Australia and started advertising under the new name.The Sydney Morning Herald Wednesday 15 March 1967 https://news.google.com/newspapers?id=wIJWAAAAIBAJ&sjid=7-QDAAAAIBAJ&pg=1389,4516219 It had established branch offices in Melbourne, Brisbane and Hobart. These were the first links in the chain of interstate contributor service offices, which was completed in 1969 with branches in all States of the Commonwealth. Interstate operations were maintained until changes in the National Health Act in 1970, when the Fund decided to limit its activities and service to NSW, the ACT and Northern Territory.
The expanding years 1972–1982
In October 1974, HCF, in association with MBF, challenged the refusal by the then Commonwealth Minister for Social Security to approve increases in contribution rates which the funds required to meet benefit payments on higher public hospital charges. The case was heard in the NSW Supreme Court, the fund's challenge was successful and the new rates were introduced in accordance with the original submissions.The Sydney Morning Herald Wednesday 31 July 1974 https://news.google.com/newspapers?id=tLEpAAAAIBAJ&sjid=KeUDAAAAIBAJ&pg=1574,10322457The Sydney Morning Herald Friday 2 August 1974 https://news.google.com/newspapers?id=-INWAAAAIBAJ&sjid=peUDAAAAIBAJ&pg=5655,159656
The Commonwealth Government's Medibank (now Medicare) fund was established in 1975, and provided medical benefits of 85% of the Schedule Fee for everyone in the community under an income tax levy system. (Medical services coverage from 1 July 1975, followed by hospital coverage from 1 October 1975). This provided HCF and all other Australian health funds with a government run competitor whose services were compulsory.
To maintain its community service role in this new environment, HCF introduced its Multicover plan from 1 July 1975, providing cover for the medical "gap" (the difference between the Medibank benefit and the Schedule Fee) and for a wide range of other health care services, such as dental, optical, physiotherapy, home nursing and overseas health care, which were not covered by Medibank.The Sydney Morning Herald Tuesday 10 June 1975 https://news.google.com/newspapers?id=Zg5SAAAAIBAJ&sjid=ROcDAAAAIBAJ&pg=1362,2136666The Sydney Morning Herald Wednesday 1 October 1975 https://news.google.com.au/newspapers?id=F_1jAAAAIBAJ&sjid=HOcDAAAAIBAJ&pg=6674,60439The Sydney Morning Herald Tuesday 7 October 1975 https://news.google.com.au/newspapers?id=Hf1jAAAAIBAJ&sjid=HOcDAAAAIBAJ&pg=6632,1868577
In November 1975, the head office staff completed their occupation of HCF's new premises at 403 George Street Sydney, which have since been extended to accommodate additional staff and facilities needed to provide the Fund's expanding services.