A public hospital and a private medical imaging provider in Western Australia have been linked to Medicare claims for services that were not eligible for bulk billing, according to an internal memo circulated earlier this month.
The memo, issued by Integral Diagnostics on June 4, warned that some radiologists had been signing off on referrals to enable Medicare rebates for services that should not qualify. “This practice carries significant compliance risks for yourself as the radiologist and may be interpreted as inconsistent with Medicare requirements,” the document stated.
The radiology department involved is staffed by the public hospital but operated by Apex, a private provider responsible for X‑rays and other imaging services. Some of Apex’s billing is entered into the system by staff from the WA Country Health Service (WACHS), raising further questions about oversight and responsibility.
Integral Diagnostics managing director Ian Kadish denied any knowledge of improper billing when approached after the memo surfaced. “Integral Diagnostics is not currently aware of any incorrect billing,” he said.
Internal emails reviewed by the ABC show discussions about adding a clause to protect radiologists from liability if billing errors occur due to actions taken by third‑party staff such as WACHS employees. The WA Department of Health described this arrangement as standard practice to ensure clinicians are not held responsible for administrative mistakes made on their behalf.
A separate internal WACHS email sent on June 3 urged staff to “please ensure that staff are aware of billing rules,” listing several examples of improper practices to avoid including charging for radiologist consultations that never took place and double billing for CT scans.
The revelations have prompted renewed scrutiny of billing processes across WA’s public-private healthcare partnerships, with compliance and transparency now under sharper focus.
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