‘Doubtful healthcare companies can still operate’

It seems that dubious health care companies and health care cowboys are still abusing health care money. Report that Pointer and he A.D after joint inspection. The investigative journalism program and the newspaper say that there is control over health care fraud that may be decreasing, but the problem is not decreasing.

For example, the number of health care companies that make abnormally high profits seems to be almost unchanged. These companies also give themselves millions in dividends and profit distributions, thus taking money away from health care. It is estimated that fraud amounts to at least 10 billion euros per year.

The home care, disability care or mental health care companies make profits of 10 percent or more for at least three years. This is unusual in the healthcare sector, as fixed rates are used. A profit of at least 3 percent is common in the sector. Margins higher than 3 to 5 percent are “almost impossible,” Pointer reports.

Health care herdsmen come up with all kinds of ways to hide their profits. This is how they hide health care money in their accounts. Investments are made in real estate or profits are distributed to other companies owned by management. Also, for example, “incredibly high costs” are charged for things like office supplies.

The number of healthcare companies that make these high profits has never been lower than 5 percent since 2017. At the same time, fewer reports have been received by the Healthcare Fraud Information Center (IKZ) in recent years. In 2019, 613 reports of possible fraud were received, in 2022 there were 338.

According to the IKZ, this reduction does not mean that there are fewer fraudulent health care companies. “Fraudsters are becoming more innovative in finding loopholes in policy and ways to commit fraud,” an IKZ spokesperson explains to Pointer. “These are not identified as quickly.”

According to the exchange, supervisory authorities will also share fewer signals among themselves due to privacy legislation. On the other hand, the quality of the reports is improving, the IKZ says. In addition, municipalities must report signs of this to the IKZ from 1 January 2025. This is not yet legally required.

Two years ago, the Court of Audit, which investigates whether our tax money is being spent properly, reported that little came of it combating health care fraud. Even now the Court of Inquiry is still not optimistic. “What hurts us is that many public organizations are looking at how they can stop fraud,” says Ewout Irrgang from the AD Audit Court. “And the result is that the approach to fraud is not effective or nearly so.”

That came to light five years ago dozens of health care companies he made extremely high profits. Pointer, Follow The Money and Reporter Radio then analyzed the annual accounts. 85 companies achieved a profit percentage of 10 to 50 percent two years in a row. All three programs previously showed similar results 97 other companieswith an outlier of almost 67 percent.

At the time, the Minister at the time Hugo de Jonge for Health, Welfare and Sports announced the unusual profits. “The rates leave no room for you to provide good care and save as much,” he said. “If you see these signs, especially for several years in a row, it’s maybe something is going on. Health care money is for care and should only be spent on care. Caring is about serving and not earning.”