Media release

AMA rejects baseless fraud claims made in HSU report

The Australian Medical Association rejects the baseless claims published by the Health Services Union (HSU) in its latest report, which contains no credible evidence.

Close-up image of stethoscope on a computer

AMA President Dr Danielle McMullen said the HSU’s report recycles previously discredited claims of the extent of Medicare fraud. 

“It is disappointing to see the HSU attempting to tarnish hardworking doctors in a flimsy report that contains baseless claim after baseless claim,” Dr McMullen said.

“The 2023 independent review into Medicare compliance found no evidence of the $8 billion fraud quoted in media reports at the time or the $10 billion figure now being recycled by the HSU without evidence.

“We strongly encourage the HSU to check their sources and invest more effort into looking after the interests of their members, rather than mounting unjustified attacks on hard working medical professionals who are focused on delivering the best possible care for their patients.”

The 2023 review conducted by Dr Pradeep Philip found Medicare Benefits Schedule (MBS) compliance issues were overwhelmingly caused by the complexity of the system. This confirms the claims about Medicare fraud are vastly inflated and unsubstantiated.

The review found high levels of practitioner integrity, with Dr Philip saying the “overwhelming majority of practitioners are well meaning and protective of the Australian health system, particularly of the care they provide to their patients”.

Dr Philip also said in the review: “A large part of the success and efficacy of Australia’s health system, to date, is due to this level of altruistic behaviour by health professionals”.

In estimating the potential leakage in the Medicare payment system, Dr Philip’s much lower estimates were largely consistent with those provided by reputable sources like the Australian National Audit Office.

Dr McMullen said the AMA continues to work with the federal government and the Department of Health, Disability and Ageing to simplify MBS item numbers, encourage greater education, reform legislative arrangements and modernise compliance activities.

“HSU members play a critical role in our health system and we value their work,” Dr McMullen said. 

“While the HSU is intent on making outrageous claims, we will get on with the job of pursuing meaningful reforms, including advocating for a new National Health Reform Agreement to improve public hospital funding, and pushing for reforms to Medicare to bring it line with the 21st century.”

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