Primary Health Care Ltd
(ASX:PRY) has taken legal action against rival Healthscope for allegedly bribing staff at a Melbourne private hospital to use its pathology services.
The Australian reports that Primary believes Healthscope launched a coordinated campaign to promote its Gribbles Pathology ahead of Primary’s Symbion pathology business by offering to pay for office refurbishments, new medical equipment and research assistants.
Primary is alleging that Healthscope’s conduct is in breach of contracts that its Symbion pathology business had in place with the previous landlord of the John Fawkner Private Hospital.
The accusations have also raised questions as to whether Healthscope violated the Health Insurances Act, which prevents the direct or indirect offer of inducements to encourage use of pathology services.
The case also includes claims of similar conduct at Hills Private Hospital and Lady Davidson Private Hospital in Sydney.
The hearing in the Supreme Court of Victoria is continuing.
For the 2009 financial year, Primary Health Care posted a $108.5 million profit.
