Security Briefing – 3 April 2009

Victoria’s major hospitals will undergo audits as the scandal over the manipulation of waiting lists continues to escalate. Health Minister Daniel Andrews has also announced that a ‘Director of Data Integrity’ will be created within the Department of Human Services. The move comes in response to mounting pressure regarding the lack of effective quality control regimes involved in hospital data validation.

Audit calls for extra data checks to be enforced

An independent audit has found that ‘phantom wards’ were created and waiting lists were manipulated at four Victorian hospitals (Royal Melbourne, Royal Children’s, Dendenong and Latrobe Regional). Meanwhile, the Royal Women’s Hospital had been manipulating waiting lists for almost a decade. Senior health sources and the Australian Medical Association stated in February that hospital data are subject to manipulation.

The report by Victoria’s Attorney-General, Des Pearson, found that nurses were retrospectively amending patient data records to assist hospitals in meeting government targets. Mr. Pearson’s audit, which stated that fraud is likely to be more widespread than the current findings, advised that new data checks be enforced as part of sweeping changes in the hospital funding system. The manipulation of hospital data calls into question the accuracy of Government health system performance reports.

International Operations Group - Analysis

The current global financial crisis will uncover increasing levels of fraud as organisations look more closely at their operations. The number of potential fraudsters is also set to rise due to heightened workplace and financial pressures. Many organisations have inadequate anti-fraud programs in place. A recent survey from Ernst & Young found that 42 percent of companies do not have a formal anti-fraud policy while the Association of Certified Fraud Examiners’ 2008 Report to the Nation estimated that losses through fraud runs at 7 percent of revenue.

International Operations Group provides intelligence and security support for corporate and individual clients across the globe. Our team includes experienced specialists in fraud detection, fraud recovery and fraud risk management. Please email intel [at] interopsgroup [dot] com for further information.

For more information on our fee-based intelligence updates or bespoke reporting, please email Rob Stevenson - rob [at] interopsgroup [dot] com. Rob can also be telephoned on +61 [0] 420 244 909.