‘Mining kickback’ bar to doctors

A COMPANY owned by the mining union and the NSW Minerals Council has been accused of paying financial “kickbacks” that disadvantage independent doctors wanting to perform compulsory medical examinations on coal workers in the Hunter Valley.

While a two-year state government investigation into complaints about the practice appears to have gone nowhere, occupational physician Maurice Harden said the payment of $220 rebates by Coal Services Health was preventing the delivery of independent medical services on an issue of great community concern.

“When there is so much concern in the Hunter Valley community about the impact of dust, noise vibration and other issues in the coal industry, this practice is stopping us from being able to properly investigate,” Dr Harden said. “It is stopping free access for the medical profession to be able to explore these things.”

A spokesman for Coal Services said a “rebate” was paid to one company to offset money already paid for medical services as part of compulsory workers’ compensation premiums.

He said there were a number of competitive health-service providers in the Hunter Valley.

Coal Services was established in 2001 to replace the Joint Coal Board and is owned equally by the Construction Forestry Mining and Energy Union and the NSW Minerals Council, which represents mining companies.

In February 2011, Coal Services developed “Order 41”, requiring “employers of a coalmine worker or operators of a coal operation in NSW to ensure that pre-placement and periodic health surveillance medical assessment are completed for their workforce”.

Dr Harden wrote to former NSW resources and energy minister Chris Hartcher in March 2012 to complain about the payment of “rebates” by Coal Services, saying they had disadvantaged his tender to perform periodic medical examinations.

In the letter, Dr Harden said the company had told him that his bid had been “competitive in every aspect other than our inability to provide a rebate for each medical examination conducted”.

“When I inquired further about this ‘rebate’, I was told by the mining company that Coal Services provides the company with a rebate of $220 for every medical that they conduct,” Dr Harden said.

“So in essence, while we charge similar rates to conduct the service, Coal Services has the added advantage of being able to offer a kickback to the company for each examination that they perform.”

Mr Hartcher responded in June 2012 that the matter had been referred to NSW Trade and Investment division of the Department of Minerals and Energy to “examine the significance of any such practice and the potential influence it may have on the market as an approved company under the Coal Industry Act”.

“You will be advised of the outcome of this investigation when it is finished,” the letter said.