| Strategic Focus and Strategies |
Strategic Goals and Key Performance Indicators |
Results and Performance Against Targets |
|
| Revenue Growth: Strategies |
Goal: Achieve a strong and sustainable financial position |
Unit |
2007/08
Actual |
2008/09
Actual |
2008/09
Forecast |
Change on
Last Year |
Major Initiatives and actions this year |
| Maintain appropriate and prudent level of reserves |
Group equity * |
$'000 |
$562,588 |
$579,753 * |
$666,813 |
3% |
Successful merger with Manchester Unity |
| |
Solvency requirement cover (HCF health insurance) |
x minimum |
4.1 |
1.9 |
4.3 |
(55%) |
MU merger affected these ratios |
| |
Solvency requirement cover (MU health insurance) |
x minimum |
3.1 |
3.7 |
4.5 |
17% |
MU merger affected these ratios |
| |
Operating profit after tax and donation to research * |
$'000 |
$37,316 |
$21,530 * |
$97,213 |
(42%) |
Global Financial Crisis (GFC) affected investment return |
| Responsibly price our products
|
Net premium income * |
$'000 |
$1,096,850 |
$1,325,530 * |
$1,205,531 |
10% |
|
| |
Underwriting surplus after expenses * |
$'000 |
$33,632 |
$38,186 * |
$50,364 |
15% |
|
| Earn additional income through prudent investment strategies |
Investment and other income * |
$'000 |
$13,308 |
($6,429)* |
$47,620 |
(172%) |
Maintained a 80:20 asset mix, GFC affected results |
| Membership Growth: Strategies |
Goal: Increase value for membership |
|
|
|
| Align products and distribution channels with key segments |
Health fund membership growth * |
Lives '000 |
1,066 |
1,284 * |
1,070 |
20% |
Includes 179,000 Manchester Unity members |
|
Cross sell health, life, travel and other insurance |
Life insurance policy growth |
Lives '000 |
410 |
434 |
429 |
6% |
|
| Increase business outside NSW/ACT |
Revenue earned outside NSW / ACT |
% premium |
23% |
24% |
25% |
4% |
Interstate marketing strategy – Sales were 24% of new business |
| Organise and manage quality, cost effective provider networks |
Satisfaction with being a HCF member (survey) |
% |
96% |
95% |
>95% |
(1%) |
Disease management programs cover over 11,000 patients |
| Minimise medical out of pocket expense |
Hospital, medical and dental charge agreements (national) |
Number |
22,518 |
25,752 |
23,645 |
14% |
Funded 727,000 days of hospital care, 4.2% more than last year |
| Increase patient satisfaction with care we have funded |
Medical services covered without a co-payment |
% Services |
87% |
87% |
86% |
0% |
Funded 2,084,359 medical services, 8.5% more than last year |
| Increase member satisfaction |
Would recommend HCF to others |
% (average) |
96% |
95% |
96% |
(1%) |
Funded over 5,800,000 ancillary services, an increase of 1.8% |
| Achieve Operational Excellence: Strategies |
Goals: Control benefit costs and systematically improve operational efficiency and service levels |
|
|
|
| Effectively control benefit costs |
Group Claims Ratio |
% premium |
88.7% |
88.3% |
87.6% |
0% |
Dental Centre customer service booking systems improved |
| Effectively manage administrative costs |
Health fund management expense ratio (MER) – HCF |
% premium |
7.9% |
7.8% |
7.8% |
(1%) |
|
| Increase use of low cost transactions |
Transactions processed by eBusiness and call centre |
% total |
75% |
78% |
78% |
(4%) |
10 Kaizen (Lean Thinking) projects initiated |
| People and Organisation Capability: Strategies |
Goal: Develop the skills and capabilities needed to grow our business |
|
|
|
| Maintain top quartile staff satisfaction and engagement |
Staff engagement index (Benchmark survey score) |
% |
77% |
76% |
78% |
(1%) |
Team building for units with below HCF average scores |
| Develop the competencies and leadership we need to succeed |
Staff retention |
% pa |
78% |
85% |
78% |
9% |
Team building for units with below HCF average scores |
| |
Key job succession / coverage ratio |
% key jobs |
100% |
100% |
100% |
0% |
0% Executive development programs |
| |
Leadership Index (Benchmark survey score) |
% |
79% |
78% |
80% |
(1%) |
Leadership development program |
| |
Staff (full time equivalents) * |
FTE (#) |
774 |
1,041 * |
844 |
34% |
|
| |
Operating revenue per $1,000 of payroll cost |
$ |
26,661 |
28,055 |
26,257 |
5% |
Kaizen and other improvement projects |
| Community and Social Responsibility: Strategies |
Goal: Ensure HCF is fully compliant and plays an appropriate role in improving the health of our communities |
|
|
|
| Contribute to health and medical research which will benefit all Australians |
HCF Health and Medical Research Foundation donation |
$'000 |
5,000 |
1,000 |
5,000 |
(80%) |
Two new projects funded; corpus increased to $26m; |
| |
HeartKids Australia |
$'000 |
150 |
300 |
300 |
100% |
Maintained MU donation to Heart Kids Australia |
| |
Research donation as percentage of HCF operating profit |
% NPAT |
12% |
4% |
5% |
(63%) |
|
| Ensure a safe workplace |
Lost time accident frequency rate per million hours worked |
days (m) |
7 |
3.9 |
6.6 |
(44%) |
|
| Manage risk and compliance systems effectively |
Significant fines for non compliance with laws or regulations |
$ |
0 |
0 |
0 |
n/a |
|
| |
Non compliance with regulations – voluntary codes |
Number |
20 |
14 |
0 |
(30%) |
All breaches were minor and self reported |
