Media Release

13 March 2007

Woman Sentenced to Term of Imprisonment for Rest Home Fraud

HealthPAC, a business unit of the Ministry of Health, is pleased with yesterday's sentencing of a rest home owner, sentenced to a term of imprisonment for fraud.

The woman, whose name is currently suppressed, has been sentenced in the Waitakere District Court to 18 months jail and is in custody awaiting an application for home detention.

The woman earlier pleaded guilty to six charges of obtaining by deception and 10 charges of using a document for pecuniary advantage, after fraudulently obtaining $343,000 from the Government. This follows an investigation of the rest home, whose name is also suppressed, in March 2006, which found that Proposed Payment Schedules had been falsified.

Residential care facilities are entitled to submit claims for Government funding for eligible people who are residents of a rest home or hospital. Once a fortnight, the residential care facility is required to complete the Proposed Payment Schedule correctly.

The woman claimed subsidies for 13 residents who were in fact deceased. In one instance, the defendant continued to claim subsidies for a woman who died in 1999. The defendant then notified HealthPAC of the death six years later, but certified that the rest home had provided services for each fortnightly claim over that six year period.

The $343,000 obtained over a seven year period is being sought as reparation.

HealthPAC Group Manager Quentin Wilson says this sentencing sends a clear message that fraud will not be tolerated.

"If people choose to make false claims to HealthPAC, they can expect to be caught and punished accordingly."

Quentin Wilson says he acknowledges the majority of rest homes that claim appropriately and take every practicable step to adhere to the law.

ENDS

For further information, please contact
Victoria Evans
Media Advisor
Ph: 04 496 2036