Primary Health Care investigated over claims it offered incentives to radiologists that may have led to over-servicing

An investigation has been launched by the Federal Government into whether a leading healthcare company potentially broke laws that ban offering incentives for doctors to over-service.

The ABC has obtained an email that shows Primary Health Care made an offer of company share options to two of its radiologists in 2010, which it indicated ended in April 2015.

A University of Sydney health law expert said the offer was a clear breach of two national health laws because it offered radiologists an incentive to make more money which could lead them to suggest more tests than needed.

The company said the offer was withdrawn the next day, is not in effect, and is not a breach of the law.

Following inquiries from the ABC this week the Department of Human Services said it would investigate.

Radiologists are specialist doctors who read scans and help make diagnoses and can make recommendations to referring doctors for more scans.

It is up to the referring doctor to approve the extra investigations.

In the email sent to two of its radiologists in June 2010, Primary Health Care offered the radiologists share options in the company.

It included a "vesting hurdle" of attaining revenues of $6.5 million in 2012.

This meant if the owners of the radiology clinics billed more than $6.5 million in that year, they could take advantage of the offer.

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Primary Health Care investigated over claims it offered incentives to radiologists that may have led to over-servicing

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