Tuesday, August 31, 2021

THUNDERBOLT - AUDITOR GENERAL v OSO [Health Insurance Organisation] FOR CRIMINAL OFFENCES

 Filenews 31 August 2021 - by Vassos Vassiliou



In the Committee for the Protection of Competition (PSC), in the Parliament and in the Minister of Health, the Auditor General pins the Health Insurance Organisation (OSO), referring to criminal offences regarding the agreement signed by the Organization with private hospitals for inpatient health care within the GHS. He argues that the contracts signed with hospitals by the HIO and the resulting (from) payments made are illegal.

Odysseas Michaelides, in yesterday's letter to the Deputy General Director of the HIO and citing a relevant opinion of the Attorney General, argues that the HIO with his actions allowed the creation of an informal multi-insurance system, contrary to the clear will of the Parliament, while referring to unequal treatment of health providers. The letter also calls on the health minister "to act within the framework of the legislation to take steps to combat the abuses that unfortunately continue to plague and undermine the system". Apart from the criminal offenses that he believes arise, the Auditor General stresses that the equal treatment of patients who donate blood to the GHS is not ensured either.

With the letter which bears the indication "Urgent" and which is notified to the Attorney General of the Republic, the Minister of Health, the Chairman and Members of the Parliamentary Audit Committee, the Chairman and Members of the Parliamentary Committee on Health, the President of the Hellenic National Health Service, the President of the Hellenic Air Protection Association, the Accountant General and the Superintendent of State Aid Control, the Auditor General refers to his letters (15.7.2020 and 30.9.2020) as well as to the discussion of the issue of the contract with private hospitals on 30.7.2020 e before the House Standing Committee on Audit, noting the following:

- We would like to point out that the obvious and flagrant violations of fundamental provisions and the whole philosophy of the General Health System Law (N.89(I)/2001) that we had recorded, have recently been confirmed by a number of opinions of the Attorney General of the Republic on the day. 9.8.2021.

- There is perhaps no need to point out that under section 61(5) of the General Health System Law, any omission, act or action committed in violation of an explicit provision of this Law constitutes a criminal offense. Although, as is well known, ignorance of the law is not a reason to exclude criminal liability for an act or omission, which would otherwise constitute a criminal offense, our Service has for a year indicated to you that you are acting in violation of the relevant legislation. Therefore, you cannot even plead ignorance of the law. Unfortunately, with your answer date. 16.10.2020 you had insisted on the supposed legitimacy of your actions. Now, the Attorney General of the Republic also points you to illegality.

On the basis of the above, it follows that contracts you have entered into and the resulting payments you make are illegal.

- We consider it of the utmost importance that the actions you have taken not only violate explicit provisions of the legislation, but also violate the basic purpose of the law for a universal system that will provide equal treatment of patients, create conditions of unequal treatment of health benefits and have essentially allowed the creation of an informal multi-insurance system, contrary to the clear will of the House of Representatives and without even the necessary safeguards that such a system should have if the state decided to choose it.

- Taking into account that the HIO holds a dominant position in the market, since with your actions and decisions and the unequal treatment of health benefits you are capable of hindering the maintenance of effective competition in the relevant market, we consider that the matter may fall within the competence of the Commission for the Protection of Competition (PSC) to which we notify this for possible actions of its own.

- This is also communicated to the Minister of Health, who we expect will exercise the powers conferred on him by Article 11A of the Law, so that the OSO can fully comply with the provisions of the legislation and so that adequate measures can reasonably be taken to combat the phenomena of abuse which unfortunately continue to afflict and undermine the system.

"Opaque the conclusion of contracts with private hospitals".  "Citizens have a right to know how the HCO uses their money"

The Auditor General, in a letter to the Parliament on 15/7/2020 regarding the Memorandum of Understanding between the (former) Minister of Health, the Chairman of the HiO Board of Directors and the President of the Pancyprian Association of Private Hospitals (PASIN), commenting on the 37 contracts that had been signed for the provision of health care services with private hospitals and taking into account that no regulations or circulars had been issued regulating the remuneration, etc., said that "questions arise about the legal basis for the conclusion of contracts". Reference was also made to favourable treatment of hospitals.

Moreover, a report prepared by the Audit Office stated that the procedure followed for the conclusion of contracts with private hospitals was opaque, and includes all the elements that can characterize it as a high risk of corruption, without this report suggesting that there is before it any indication or suspicion of the existence of cases of corruption. However, it is added that the negotiation for the remuneration of hospitals was done secretly, the relevant legislation was not followed and the fees of the hospitals remain secret, in contrast to the procedure followed to determine the remuneration of personal and special doctors, where there was full transparency. We believe, the report continued, that the citizens of the State, who contribute to the budget of the General Health System, have the right to know how the OECD uses their money.

The issues raised by the Auditor General are expected to be discussed before the House's Parliamentary Audit Committee, especially since what he recorded in his previous reports on the contract signed by the OSO with private hospitals seems to be confirmed by the opinion of the Attorney General.