The relations between the HMA and the Health Funds (kupot holim) were very tense. Most of the physicians in the Land of Israel did not hold positions in the public sector and were forced to make do with their private practices, which dwindled monthly.
At the same time, the HMA acted tenaciously to enable free immigration and to assist the new immigrants, despite the negative impact of this influx on the livelihood of its members. To supplement their income many physicians also worked in the Arab sector.
The HMA established financial assistance funds for its members such as the Saad (welfare) loan fund and the "Constructive Fund" which over the course of time changed its name to The Physician Unemployment Fund.
The HMA made every effort to create jobs for physicians, even opening clinics for the poor which offered medical care at a minimal cost.
During this period the HMA also became involved in the working conditions of its members and in the formulation of its policy as a representative professional union. The Medical Control Board was founded this year to supervise the quality of medications sold to consumers.