Medicare Local 'takeover' dispute
The merger of two GP divisions into a Medicare Local has turned acrimonious, with the Murrumbidgee General Practice Network (MGPN) claiming that it has been subject to a takeover by its neighbouring Riverina division.
The CEO of the MGPN says the Riverina division, chaired by former AGPN leader Dr Tony Hobbs, “unilaterally negotiated with DoHA without the MGPN's knowledge and exclusively executed the Medicare Local contracts for themselves."
Despite formal complaints to DoHA and ASIC about the “breach of trust” the Riverina’s conduct was not deemed illegal, the local newspaper (link) reports.
According to The Irrigator, the Murumbidgee Medicare Local was planned to be a merger of the Murrumbidgee General Practice Network and the Riverina Division of General Practice and Primary Health.
However, in the annual report for the Murrumbidgee General Practice Network, CEO Keith McDonald says the Riverina division secured secured a controlling interest of the consortium, without consultation.
"Though MGPN has subesquently pursued serious formal complaints through numerous channels on this breach of trust, there has been no remedy and subsequent arbitration concluded that, technically, the RDGP&PH's conduct was not illegal.
"With DoHA's continued insistence on endorsing RDGP&PH as the lead agent in establishing the Medicare Local, the process has now firmed as a takeover rather than a merger," he writes.
Mr McDonald says the takeover and the loss of Commonwealth funding for the division means there are now doubts about the future of local offices and programs.
Hmmmmm! Something about this does seem to ring alarm bells with another such amalgamation. Perhaps the Southern Highlands Division of General Practice might like to consider their current position with their Macarthur colleagues. It could be a matter of history repeating itself.
