Fed: up to 250 radiologists face court action over MRI scam

AAP General News (Australia)
12-23-1999
Fed: up to 250 radiologists face court action over MRI scam

Health Minister MICHAEL WOOLDRIDGE says up to 250 specialist radiologists face criminal
or civil action over a multi-million dollar scam related to high technology scans.

Dr WOOLDRIDGE says a major Health Insurance Commission investigation has recommended
fraud charges in relation to 19 contracts for Magnetic Resonance Imaging -- or MRI --
machines.

He says the government will take civil action against radiologists involved in a further
eight MRI contracts, to recover Medicare benefits.

Dr WOOLDRIDGE has told reporters the legal action could involve up to 250 radiologists.

If found guilty, radiologists could be struck off the medical register, be denied Medicare
rebates, or be fined or jailed.

Dr WOOLDRIDGE says the Health Insurance Commission received claims for 52 MRI machines
on order before May 12, 1998, but the commission has found as few as seven orders could
have been genuine.







The so called scan scam came to light after the May 1998 budget decision to allow Medicare
rebates of up to $475 for scans performed on MRI machines on order before May 12, 1998.

The Health Insurance Commission found most of the alleged fraud cases related to backdated
contracts for MRI machines so radiologists could claim Medicare rebates.

But some cases also involved not fully disclosing details of the MRI contracts.

AAP RTV jg/jn

KEYWORD: MRI WOOLDRIDGE (CANBERRA)

1999 AAP Information Services Pty Limited (AAP) or its Licensors.