Medical imaging provider to investigate improper Medicare billing allegations

Medical imaging provider to investigate improper Medicare billing allegations Tue 9 Jun 2026 at 1:50pm In short: Integral Diagnostics says it will conduct an external audit to confirm there are no Medicare billing "anomalies" at Kalgoorlie Health Campus. The WA Country Health Service enters billings for some of the radiology services conducted by the company's subsibiary, Apex Radiology. What's next? WA's health minister says the matter has been referred to the state's Corruption and Crime Commission. One of Australia's largest medical imaging providers says it will investigate allegations of improper Medicare billing at a regional WA public hospital following revelations that rebates had been incorrectly claimed. Integral Diagnostics' subsidiary, Apex Radiology, operates a radiology department at Kalgoorlie Health Campus, where concerns have been raised over a range of incorrect billing practices, prompting the company to launch an external audit. The WA health minister has now referred the matter to the state's corruption and crime watchdog, after earlier saying a government investigation did not identify any concerns. Internal emails, seen by the ABC, revealed the company had previously raised concerns about non-Medicare compliant billing, and sought legal protection for its staff. The WA Country Health Service (WACHS) enters billings for some of the radiology services conducted by Apex. An email sent to WACHS staff last week, seen by the ABC, urged them to ensure they were complying with Medicare billing rules. The email listed several examples of improper practices to avoid, including entering the incorrect Medicare billing codes that resulted in double-billing, and charging for services not received. The concerns included improperly claiming rebates for radiologist consultations when patients were not receiving those consultations, and charging twice for CT scans. Integral Diagnostics company secretary John Merity said the company was "not aware of any billing issue on our part". "IDX [Integral Diagnostics] and Apex are obviously concerned about the allegations being made and out of an abundance of caution we will conduct an external audit to confirm that there are no billing anomalies," Mr Merity told the ABC. WACHS has been contacted for comment. Corruption watchdog involved WA Health Minister Meredith Hammat said her department had conducted an earlier investigation that did not identify any concerns, but in light of new information, had referred the matter to the state's Corruption and Crime Commission (CCC). "My office received additional information, we shared that with the department, they then came to a different view," she said. "We have made a referral so that we can have a closer look at the billing practices, so that we are clear about what's going on here." Ms Hammat said the person who conducted the initial investigation was "on a period of leave", but did not clarify why. "I'm confident that the people who were involved in the initial investigations are not in a position to influence the work that's going on at the moment," she said. The CCC has been contacted for comment. 'No concerns elsewhere' WA Opposition Leader Basil Zempilas said he was "really concerned" when asked if the allegations could indicate a broader issue. "Health Minister Meredith Hammat has a lot of explaining to do," he said. Ms Hammat said the reviews thus far had not identified any wrongdoing at the Kalgoorlie hospital, and said there was no information to suggest there were issues with bulk billing at other public hospitals or clinics. "There's nothing that's been flagged with me that suggests there's any concerns with practices elsewhere," she said. Integral Diagnostics operates more than 150 radiology clinics across Australia and New Zealand. In a statement, the company said it was "a leader in billing accuracy" within the industry. "While billing frameworks can be complex, particularly as diagnostic services continue to evolve, our responsibility is clear," Mr Merity said. "To ensure we have the right people, processes, and systems in place to achieve the highest possible standards of accuracy." An internal company memo, revealed by the ABC, said there were instances of radiologists signing off on referrals to enable Medicare rebates for ineligible services. Integral's chief medical officer urged staff to refrain from the practice as it carried "significant compliance risks". The ABC understands the concerns outlined in the memo were not related to allegations at Kalgoorlie Health Campus.