Australia’s largest hospital service, Metro North Hospital and Health Service, has been embroiled in claims of nepotism, corruption and ‘indefensible’ legal practices.

In 2018 four psychiatrists employed by Metro North commenced defamation proceedings against an ex-patient who had claimed in a blog post that she had been held unlawfully in a mental health facility. The psychiatrists sued the patient claiming $700,000 in damages plus interest and legal costs but surprisingly the legal costs for the proceedings were billed to Metro North, with taxpayers therefore ultimately picking up the tab.

A Metro North lawyer turned whistle blower stated that not only was it against an internal legal unit policy that patients not be pursued for defamation, it also raised concerns about the use of public funds to pursue essentially private litigation. He revealed that Metro North had developed a culture of aggressive litigation and cover-ups to avoid responsibility and attack people who challenged them.

In separate proceedings, Metro North was found by the Queensland Civil Administrative Tribunal to have unlawfully discriminated against a person by denying him a job because of his political activity.

Despite their obligations as a model litigant, Metro North persisted in ‘defending the indefensible’, even trying it was reported to bully the person into dropping their claim. This litigation was estimated to have cost taxpayers $2 million in damages and an estimated $500,000 in legal fees.

The medical and legal professions have long operated in close proximity to each other and case reports such as these bring into sharp focus the need for appropriate legal strategy and adherence to model litigant obligations where legal claims and rights are at stake that concern Government Departments or publicly funded regulatory bodies.

We have previously discussed the obligations of model litigants and how they ought to behave before, during and after litigation.

Cove Legal specialises in a wide range of commercial litigation and regularly assists its clients in responding to allegations made against them by government or regulatory bodies. In particular, Cove Legal has special expertise in assisting clients in the health sector. If you are facing actual or potential action from a government or regulatory body then contact us today.

Roger Blow, Practice Director P: +61 8 6381 0326 or e: roger@covelegal.com.au

This publication is not intended to provide and does not provide legal advice. You should seek professional legal advice relating to your specific situation(s) before taking any action based upon its contents.

Cove Legal’s Health Sector Update

For our clients in the health care sector these articles may be of interest to you:

With the increased use of health and medical apps, as well as tougher data breach and privacy legislation, businesses in the health sector are finding themselves increasingly vulnerable to attack. Hackers are now actively targeting the health sector in order to gain a patient’s sensitive medical information. Managing the security of the data you hold is key. You can read more here. https://blog.malwarebytes.com/101/2019/04/managing-security-medical-management-apps/

The ACCC has warned businesses that non-disparagement clauses in contracts may be considered unfair terms. Clauses that control or prevent a customer from making a public comment about the business is likely to be unfair under Australian Consumer Law. Please contact us if you have any queries about your contract terms.
With the use of influencer agreements prevalent in the health care sector, choosing the right brand ambassador is key. The following article provides a good overview of the risks and realities of the brand ambassador. https://www.tltsolicitors.com:443/insights-and-events/insight/influencer-marketing---the-risks-and-realities-of-brand-ambassadors/

Cove Legal is experienced in helping our health care sector clients navigate through the highly regulated waters of that sector. We have helped countless healthcare service providers address these challenges to leave them free to focus on their business. Call us to find out how we can help.

Roger Blow P: +61 8 6381 0326 or e: roger@covelegal.com.au