Hospital operator Healthscope Ltd
(ASX:HSP) is preparing to go to court this week to defend allegations that it bribed doctors in return for pathology referrals.
The action has been brought by rival Primary Health Care, which claims Healthscope bribed staff at John Fawkner Private Hospital to gain pathology referrals to its pathology business resulting in a breach of contract between Primary and the former owners of the hospital.
Primary also alleges Healthscope offered inducements in the form of donations to charity and education for nursing, new equipment and reduced rent in exchange for referrals.
Healthscope says it will rigorously defend the allegations at the hearing to be held in the Supreme Court of Victoria this week.
Meanwhile, competition between Healthscope, Primary Health Care and Sonic Healthcare to secure collection centre sites is fierce ahead of deregulation in July.
For the 12 months to June 30, 2009, Healthscope booked a profit of $72.29 million.
