Crookedness in an Australian public hospital

The head of The Alfred's intensive-care unit has been interviewed by the Ombudsman's office as part of an inquiry into billing practices at the Melbourne hospital. The Australian has been told the Ombudsman's office plans to examine the records of Alfred ICU director Carlos Scheinkestel as part of its inquiry. The revelation follows the resignation last week of trauma unit head Thomas Kossmann after a peer review found he was an incompetent surgeon who had rorted [misused] funds from compensation authorities, including Victoria's Transport Accident Commission. The Australian contacted Professor Scheinkestel yesterday but he refused to comment.

Professor Kossmann - who rejects the peer review's findings - faces the prospect of a criminal investigation into his billing practices and separate investigations from the TAC, Medicare and the Ombudsman. The Ombudsman's inquiry has extended beyond Professor Kossmann to a broad investigation into billing practices. The Alfred yesterday said the Ombudsman had not requested any information from it about Professor Scheinkestel. A spokesman said the intensive-care unit billed as a group so there was no way any one physician within the department stood to gain personally from any billing activity.

In January, Professor Scheinkestel was interviewed by the panel investigating Professor Kossmann and was asked about the German-born doctor's billing and surgical methods. But the interview was solely about the allegations concerning Professor Kossmann rather than anything to do with Professor Scheinkestel himself. It came after a deputy director in intensive care made a supportive submission to the panel about Professor Kossmann.

The panel, led by orthopedic specialist Bob Dickens, interviewed Professor Scheinkestel to see if he supported the submission. He told the panel he did not have sufficient knowledge or insight to comment on Professor Kossmann's surgical skills or billing methods.

Fresh allegations emerged last week when The Alfred accused Professor Kossmann of failing to declare hundreds of thousands of dollars allegedly owed to the hospital for surgery on TAC and workplace injury patients. He is also accused of getting a junior doctor to falsify a medical record to aid his defence. Professor Kossmann has denied all wrongdoing and on resigning said he was the victim of a witch-hunt.

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