International Health Care Fraud Allegations

Most of the time, fraudulent activities only involve one person, or at the most, two people. But what is happening up north in Canada, involves nearly 10% of the 1800 people who run the Health Care Facility. So far, around 150 people have been fired or willingly resigned. Baycrest Health Sciences said their Toronto-based geriatric Baycrest Hospital suffered between $4 million and $5 million in losses over an eight-year period. This does not include the cost of fixing the mess, which is still to happen.

According to the July 11, 2019 Toronto Sun, the losses were caused by employees filing bogus claims by submitting receipts for products and services that were never received. Perhaps an employee would submit a reimbursement claim for an authorized product and then use the funds to buy something unauthorized. Local politicians like the spokesman for Provincial Health Minister Christine Elliott, are blaming the fraud on loose internal controls. The quote is “… long-standing auditing weaknesses [which] allowed this … to go unchecked for too long.”

A different take might be that in Canada the notion of personal responsibility is heavily diluted.  Does the notion of “free” national health care affect behavior? Whose money was actually embezzled?  Not to be overly political, but when a fraud involves 150 different people, at one company, different dynamics seem to be at work.  When 150 people misbehave over an eight-year period, then the typical notions about keeping the fraud hidden from public view as long as possible, goes out the window. Everyone at the facility likely  knew what was happening. What really caused such a large mess?

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