Foot treatment firm probed for hard-sell tactics

NewsBot · Jun 18, 2007

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This was on the front page of The Age in Melbourne:
Foot treatment firm probed for hard-sell tactics

MEDICARE is investigating a major podiatry firm started by a convicted conman, which offers free TVs, money and glazed doughnuts to Victorian nursing homes in a bid for exclusive access to their residents' treatments.

The firm is one of two under scrutiny for aggressive practices that critics say are exploiting the public health system.

In the second case, the Australian Competition and Consumer Commission has been urged to crack down on Heart Check Australia — an unrelated firm — for advertisements urging people to have bulk-billed "stress tests" at private clinics.

The firm's marketing strategy includes targeting the customers of private erectile dysfunction clinics.

The number of stress tests taken by Victorians has surged by 25 per cent in the year to April, leading Melbourne cardiologists to warn that aggressive marketing was luring the "worried well" into unnecessary and costly tests.

Australian Medical Association president Dr Rosanna Capolingua said "patients are being exploited for market purposes" and is urging the competition watchdog to crack down on advertisements preying on vulnerable patients.

Podiatry Care Professionals, (PCP) which claims in its advertising to have Federal Government backing, was started in May 2006 by convicted fraudster and embezzler Marcus Doille, and boasts more than 7000 patients.

Mr Doille called The Age using a false name last week in response to questions about the company, throwing doubt over its claim that he no longer has a role in its activities.

Mr Doille received discounted jail sentences on fraud charges in the 1990s after telling a NSW court he was dying of AIDS, and is under investigation by the Victoria Police over unrelated fraud allegations.

Documents obtained by The Age show PCP convinced nursing homes to hand over residents' Medicare numbers before asking their GPs to refer all available Medicare treatments to its podiatrists.

Under Medicare's Enhanced Primary Care scheme, chronically ill patients can get five treatments from an "allied health" professional, including podiatrists. The treatments must be in connection with a chronic condition and referred by a GP.

But PCP has told nursing homes to attach their letterheads to pro forma letters sent to GPs and which state "that these residents meet the Medicare criteria for chronic conditions".

The company is paid $46 by Medicare — more than double the standard fee. Some of its podiatrists are earning more than $5000 a week.

The company's advertising promises to shift costs to Medicare and states: "We can come to you with doughnuts to explain. It'll be fun. To get started, give us all your residents' details … we have pro-forma letters to save you time."

The company offers nursing homes "$200 cheques" and the "crazy offer" of a 42-inch (106-centimetre) plasma TV for nursing homes that sign up 150 Medicare or private patients. It also promises that free visits by the company's dog will leave residents who have showed "no emotion before, filled with joy".

It refers to the federal Aged Care Minister as its "sponsor" and claims that Medicare has "has appreciated and welcomed our input".

But The Age believes that Medicare has obtained records showing that some of the company's podiatrists treated more than 40 Medicare and privately billed residents a day, raising doubts over whether Medicare patients received the required 20-minute consultation.

A Medicare spokesman refused to reveal details but said it was inquiring into podiatry services in several nursing homes.

The Department of Veteran Affairs has also demanded repayments from podiatrists over the incorrect billing of war veterans whom, until recently, the podiatry firm claimed it could treat free.

But the chairman of the Bayside chapter of General Practice Division of Victoria, Dr Michael Nolan, said regulators were not doing enough.

"Everyone has complained to the health department but what has been done to stop it? (Medicare) wasn't created to allow a rip-off of the system," he said.

The AMA also has growing concerns about advertisements urging people to have "stress tests" at private heart clinics, funded through bulk-billing, and is calling for the ACCC to crack down.

Podiatry Care Professionals did not respond to written questions. There is no suggestion that individual podiatrists employed by PCP are aware of any possible impropriety.
Click to expand...

Cameron · Jun 18, 2007

Reported in National Nine News
http://news.ninemsn.com.au/article.aspx?id=273548

toeslayer

Cinderalla · Jun 18, 2007

You can also check out the PDF copies of their advertising on this link...

http://www.theage.com.au/news/natio...ardsell-tactics/2007/06/17/1182018938154.html

Cinderalla

Stuart Blyth · Jun 18, 2007

This article raises an important point; namely that to bill Medicare for a 10962 item code (Podiatry) the consultation must me of a minimum duration of 20 minutes. Something to be very aware off given that HIC are currently auditing Pods in Victoria.

The HIC inspectors have to power to ask to see your Appointment books and determine whether or not the 20 minutes has been allowed for and they will also be asking for things like:

Proof of your invitation and acceptance (on paper or diarized) from the GP / Practice nurse’s to be part of the management plan

A copy of the patient notes to see they comply with the GP/Practice nurse’s request

A copy of the correspondence you sent to the GP/Practice nurse’s after the first and last consult

Something to keep in mind is that these inspectors are from the HIC and they have teeth and can bite!

Regards
Stuart Blyth

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