Medicare rorts watchdog put on hold

THE watchdog in charge of catching doctors who rort Medicare has had its operation suspended.

THE watchdog in charge of catching doctors who rort Medicare has had its operation suspended because of "irregularities" over the appointment of its panel members, jeopardising millions of dollars in government savings.

The Professional Services Review's consideration of the cases against 40 doctors has been immediately affected, but there are doubts about the enforceability of past decisions of its panels.

The agency, which recouped more than $2 million in inappropriately claimed Medicare benefits from 25 doctors last year, is feared by the medical profession.

PSR director Tony Webber told The Australian all the doctors working on panels of the PSR had been asked to resign and nominate for reappointment. "Some irregularities in the procedures relating to the appointment of a number of panel members were discovered," he said in a statement. "The PSR decided to suspend the operation of the committees whilst the implication of those irregularities was explored and remedial action taken."

The watchdog has legal advice that "no concluded PSR cases are impacted" by the problem but some doctors are already questioning whether past decisions could be open to a legal challenge.

One of the irregularities relates to the failure of the agency to complete paperwork needed to appoint two deputy directors to the PSR panel of doctors.

The Australian Medical Association last week met the government to complain about the way the watchdog was working.

AMA vice-president Steve Hambleton said under its previous director, John Holmes, membership of PSR panels had been seen as a "a sign of your seniority within the profession".

"We want it to be like that again," Dr Hambleton said.

Under legislation governing the operations of the PSR, the AMA must approve the appointment of the body's review panels. Dr Hambleton says he has not seen any names of doctors who might be appointed to these panels come before the AMA for more than a year.

A government spokeswoman has confirmed the AMA was not asked to approve the re-appointment of some panel members -- one of the irregularities that led to the suspension of the agency's work.

Several AMA members had recently complained about the operation of the PSR and that was why his organisation had approached the government, Dr Hambleton said.

The AMA supports the process of auditing the way doctors generate Medicare expenditure but it was important that "natural justice is seen to be done" in the PSR's processes, he said.

The PSR is under extra pressure after Health Minister Nicola Roxon increased the number of reviews undertaken by the agency in a bid to save the government extra money.