Medical insurers merger aborted

The groups, MDA National and Medical Insurance Group Australia (MIGA), have been forced to abort the merger after MDA National members voted overwhelmingly against it on Saturday.

MO understands that around three quarters of more than 2900 MDA National member votes were against, and that the majority of these were proxy votes cast by AMA (WA) president Dr Michael Gannon.

Dr Gannon sent MDA National members a series of emails in the weeks leading up to the vote, asking MDA National members to either vote against the merger or entrust Dr Gannon with their proxy vote.

The emails, seen by MO, warn that the merger would diminish the quality of services, and centre the amalgamated organisation in Adelaide rather than Perth.

"We are disappointed with the campaign that was run by the AMA Western Australia against the merger which we believe did not take into account the best interests of all of MDA National's members across