Health funds inquiry

An investigation into claims a private healthcare organisation cannot account for $22,000 spent on overseas trips shows the dangers of contracting out health services, a medical specialists group says.

Capital and Coast District Health Board has launched an audit into money Fagai Care Services (FCS) spent on 12 trips between 2001 and last year.

Ian Powell, executive director of the Association of Salaried Medical Specialists, said the allegations, "whether true or not, confirm how risky contracting out health services can be".

He said it was harder to monitor quality of care at contracted out health services and their use of funding.