This doctor spoke out about allegations of medical fraud. The next day, she was asked to resign

A respected anaesthetist has been dismissed from her role at a prestigious medical college after saying Australia’s health billing system lacked transparency and was skewed towards profit.

In an email obtained by this masthead, the Australian and New Zealand College of Anaesthetists (ANZCA) accused Associate Professor Joanna Sutherland of tarnishing the reputation of anaesthetists and asked her to stand down as chair of its safety and quality committee.

Associate professor and specialist anaesthetist Joanna Sutherland

The college’s response shocked many in the medical community, who perceived her comments to this masthead as “measured and reasonable”.

Sutherland was responding to allegations that dozens of anaesthetists and surgeons on Victoria’s Mornington Peninsula had engaged in fraud, double-dipping and pocketing off-the-book fees. The claims – revealed exclusively by The Age – have sparked investigations by a federal regulator and private health insurers.

“If these allegations are found to be true, in my view, that’s outrageous, unethical and it would be unacceptable,” she was quoted as saying in The Age article. “Consumers are ripe for exploitation.”

But the morning after the article was published, college president Professor Dave Story wrote to Sutherland “to request that you resign as chair of the safety and quality committee of ANZCA”.

In the email, Story said Sutherland’s quotes had concerned and offended many fellows.

“They are angry that their reputation has been slurred by a member of a major college committee,” he wrote.

“No one condones fraudulent practice, but the language you chose to use implied that many anaesthetists are not practicing ethically.”

Story wrote that the college had lost confidence in her “ability to hold this very important role” because she did not notify it of her plans to speak out.

“It does not help our vulnerable patients to have the false idea that the anaesthetist caring for them is fraudulent,” he said.

Sutherland said she was disappointed by the college’s decision and had been speaking out in a personal capacity.

“The response from the college has been to close ranks and protect the profession,” she said.

“There have been allegations about fraudulent billing, including billing by anaesthetists that would appear to be unethical and potentially illegal ... in the absence of a constructive response from the profession, I don’t think these allegations will go away.”

Sutherland, who was appointed chair of the committee in 2022 and has been a fellow of the college since 1992, said that while she believed the majority of anaesthetists did the right thing, unethical and illegal billing were “not insignificant”.

Dr Nick Coatsworth urged the college to reconsider its decision to remove Sutherland.Credit: Jamila Toderas

Medical fraud and compliance expert Dr Margaret Faux said the college had forced the resignation of the one person who could have helped them navigate a path out the mess.

“The medical bullies always attack whistleblowers, unfortunately,” she said.

Faux said the college had sent a message that if these allegations were proven, they would not perceive them as unethical, unacceptable or outrageous – the way Sutherland did.

Dr Nick Coatsworth, an ambassador for the Australian Patients Association, urged the college to reconsider its decision, describing Sutherland as “an exemplary contributor to the medical community”.

He said her published comments were “measured and reasonable”.

“This sends a terrible message to publicly minded doctors, particularly anaesthetists, that their desire to reform their profession will be met with hostile action against them,” he said.

Coatsworth said he suspected the usually fair-minded college had come under intense pressure from a small group of largely private anaesthetists.

Rachel David, chief executive of Private Healthcare Australia, said health professionals had a duty to act responsibly and ethically and call out bad behaviour.

“It is profoundly disappointing when the medical culture tries to cover up wrongdoing instead of requiring the highest standards of themselves and their colleagues,” she said, adding that Sutherland should be immediately reinstated.

David said the government needed to look at regulating medical fees and criminalising illegal billing practices.

“Punishing a whistleblower or a truth-teller is completely unacceptable. Shooting the messenger is not the answer, honesty and transparency of medical billing is a basic patient’s right,” she said.

In a statement to this masthead, Story said the role of the safety and quality committee chair was to support safe clinical practice in anaesthesia.

“The committee’s remit does not include billing practices,” he said on Friday.

Story said the majority of anaesthetists operated with integrity and professionalism and made every effort to comply with increasingly complex billing requirements.

He said the college did not condone the alleged billing practices outlined by this masthead and supported calls for regulatory bodies to investigate any claims of fraudulent behaviour.

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