Probe into medical watchdog

AUSTRALIA'S beleaguered Medicare watchdog, the Professional Standards Review, will itself be reviewed.

AUSTRALIA'S beleaguered Medicare watchdog, the Professional Standards Review, will itself be reviewed after the collapse of 39 investigations into doctors' prescribing and referral practices.

An increased workload, and pressure from the federal government to rein in health inflation, have exposed cracks in the PSR and left it unable to function as intended.

In November, PSR director Tony Webber was forced to ask for the resignation of the agency's review panel -- deputy directors who head the committees that investigate doctors -- because of flaws in the appointment process.

The Australian has learned that the 39 doctors who were being investigated by the committees were last week told their cases would be closed and no further action taken.

Dr Webber had asked the PSR advisory committee to conduct an internal review to strengthen its processes and procedures, but now the government has ordered an external review aimed at restoring the medical profession's faith in the agency.

Federal Health Minister Nicola Roxon yesterday said she had raised concerns about the situation with the PSR, as had the Australian Medical Association, and wanted a new panel installed as soon as possible.