For immediate release

Waikato District Health Board (DHB) today introduced a fraud hotline to try to stamp out health fraud.

Audit and Compliance, a Ministry of Health business unit responsible for managing risks associated with payment for services to contracted health providers, will operate the hotline for the DHB.

Waikato DHB chief executive Craig Climo said the hotline would make it easy for staff and members of the public to call in and report any suspicions of health provider fraud.

"Calls to the hotline will be assessed by Audit and Compliance and reported to the DHB for further investigation."

Risk Assessment and Intelligence Manager Paul Johnstone said fraud hotlines worked well in the past and resulted in a number of successful prosecutions against health providers.

"The aim is to mobilise the honest majority and prevent money being taken away from health services," he said.

"Fraud of health funding is unacceptable as it ultimately affects patients by taking money away from providing health care.

"We are encouraging all Ministry and DHB staff and members of the public to be vigilant and to report genuine suspicions of fraud. We hope the hotline will be a vehicle which will allow people to report their concerns in confidence."

The fraud hotline number is 0800 424 888.

Below are some examples of fraud/theft incidents amounting to $170,000 uncovered during internal investigations at Waikato DHB in the last two years. Investigation on behalf of the DHB by Audit and Compliance of service providers uncovered close to $200,000 during the period.

* An employee was proven to have stolen food products from a hospital kitchen and was dismissed; a complaint was filed with the police.

* An employee stole a large number of mobile phones, both used and new, and sold them on TradeMe. The person was dismissed and the incident reported to the police.

* A contract cleaner stole abusable drugs over a four-week period and was dismissed by his employer after being confronted about the thefts. The incident was also reported to the police.

* A nurse was observed stealing abusable drugs from the organisation over a two-week period of surveillance, and was dismissed and the incident reported to the police.

* An employee made unauthorised use of an organisational vehicle's fuel card for personal gain. The employee was dismissed.

* A cafeteria worker was seen to steal sale proceeds from the department's tills over a week of surveillance. The staff member was dismissed.

* An electrical contractor falsified supplier invoice copies to help conceal at least $150,000 of overcharges to the Waikato DHB during an 18-month period. The contractual arrangement was terminated, the full amount was repaid by the contractor and one of the company's directors prosecuted for fraud.

ENDS