Hospital bosses accused of fraud cover-up

Health chiefs are set to investigate claims by a senator that there was “a cover-up” by management at St Vincent’s Hospital over the fraudulent charging of health insurers for cancer drugs.

The allegation came as St Vincent’s became embroiled in a separate scandal relating to top-up payments given to senior staff there.

Senator John Crown, an oncologist at the Dublin hospital, made sensational claims under privilege in the Seanad yesterday alleging a cover-up by hospital chiefs over fraudulently charging insurers.

He said: “This began in 2002 when I discovered that members of the staff of the hospital had been deliberately and fraudulently charging private health insurers in respect of cancer drugs which had been provided to that institution for free.”

He said he told authorities including the Irish Medicines Board at the time. An investigation began but “inexplicably stopped” and reformatted later.

“Documents have recently come into my possession which I’m quite happy to discuss and share with the minister for health because they refer to money that was fraudulently taken from the voluntary insurers [VHI], of which he is the sole share holder, and of other private insurers.

“Documents which show conclusively that there was a cover-up conducted by the management and board of St Vincent’s hospital in respect of this.”

Mr Crown last night refused to elaborate on the content of the documents. After he met with Health Minister James Reilly, it was confirmed Department of Health secretary general Ambrose McLoughlin and officials would examine the claims.

State-owned VHI Healthcare said last night it hired an auditing firm in 2002 to investigate the matter and recouped over €1m that was raised incorrectly.

St Vincent’s Healthcare Group, which oversees the hospital, said it had written to Mr Crown in relation to the “very serious allegations” made in the Seanad.

It said a previous investigation into the matter had “not indicated any evidence of collusion or fraud by staff or within the hospital”.

The day of controversy for the hospital deepened as it became the latest facility to be hit by the top-ups scandal engulfing the health system.

After revelations three senior officials at the facility were paid over €500,000 in secret extra allowances, hospital chiefs were ordered to clarify the matter to the Dáil Public Accounts Committee. However, the cross-party group was left without any explanation throughout its five-hour meeting.

A furious PAC chairman, Fianna Fáil TD John McGuinness, called St Vincent’s Hospital directly when the meeting ended.

However, in a detailed letter finally sent to the PAC, hospital chairman Noel Whelan refused to explain the matter other than to say the funds came from private sources collected by the private hospital which are not linked to taxpayer or charitable funds.

The lack of clarity, which mirrored a similar stance taken by hospital CEO Nicky Jermyn, was described as a deliberate snub by PAC members, who were meeting with PAC officials over the top-ups debacle yesterday.