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Home / New Zealand

Punishment for second billing scam pharmacist

NZPA
30 Jan, 2008 04:00 PM2 mins to read

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KEY POINTS:

A second south Auckland pharmacist has been punished over a scam where the Government was billed for medicine which was never given to patients.

It was Peter Renshaw Fairgray's turn to stand before the Health Practitioners Disciplinary Tribunal after his former boss Andrew Pellowe had his registration as a pharmacist cancelled after a court had sentenced him to 18 months' home detention.

Fairgray worked for Pellowe at the Dawson Rd Pharmacy.

They were investigated when government agency HealthPAC (responsible for payments to health providers) noticed a high number of medications being dispensed near the end of their expiry date.

The pharmacy was processing certain repeat medications as though they had been dispensed, regardless of whether they were requested or collected by patients.

It was discovered the pharmacy had sent the Counties Manukau District Health Board 8390 fraudulent claims worth $219,366 between October 2003 and September 2005.

From January 2004 to September 2005, Fairgray processed more than $104,000 of those claims.

However, while Pellowe made an estimated $175,000 from the offending, Fairgray did not make a cent outside his normal hourly wage.

He told the tribunal he knew the practice was wrong but he was being a "good employee" and friend by helping Pellowe.

As he was not the primary offender and did not benefit from the offending, the tribunal was more lenient than with Pellowe.

Fairgray was fined $10,000, censured and suspended for three months.

As Fairgray had purchased his own pharmacy in New Lynn, Fairgray's lawyer argued a suspension would be a "very onerous burden" as he would have to dispose of his shares in the pharmacy for the period.

The tribunal said a suspension was the appropriate penalty but noted the legislation imposed a greater burden on pharmacists than other health professionals such as GPs, who did not have to sell their practices when suspended.

It asked that the decision be reviewed by Ministry of Health watchdog Medsafe.

- NZPA

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