Otago Daily Times

Lawyer queries legality of ACC’s relationsh­ip with firm

- MIKE HOULAHAN Health reporter mike.houlahan@odt.co.nz

THE Accident Compensati­on Corporatio­n’s relationsh­ip with the firm it has contracted to review ACC decisions is ethically wrong and may turn out to be legally wrong as well, a leading ACC lawyer says. On Saturday, the Otago Daily

Times reported Dunedin ACC lawyer Warren Forster saying he could not recommend clients take disputed claims about injury cover to review because of concerns the process was not independen­t.

FairWay is contracted by ACC to conduct ACC review hearings. ACC also provides ‘‘feedback’’ on review decisions.

About 6000 case reviews concerning millions of dollars of healthcare provision are heard annually by FairWay.

ACC says while the contract may give a perception of a conflict of interest, FairWay is an independen­t entity.

Wellington lawyer Hazel Armstrong weighed in on the dispute yesterday with a stronglywo­rded letter to FairWay, a copy of which has been given to the ODT.

Revelation­s of the relationsh­ip between FairWay and ACC — including copies of feedback from the corporatio­n to reviewers — had compromise­d the integrity of the process, Ms Armstrong wrote to Bernard Lock, FairWay’s client director.

‘‘I am deeply disturbed by the revelation that FairWay receives the minutes of the weekly ACC review panel meetings which considers individual review decisions, and follows up certain review decisions at a monthly ACC/FairWay meeting,’’ she said.

‘‘I can accept that there should be quality discussion­s at a high level, but to find out that you are discussing individual decisions and feeding back ACC’s thoughts on the individual decision directly to the reviewer is ethically wrong.

‘‘It may turn out to be legally wrong as well.’’

FairWay chief executive Rhys West said it had received a copy Ms Armstrong’s letter and was in the process of responding.

‘‘There are several factual inaccuraci­es which our response will address,’’ Mr West said.

‘‘Needless to say, all FairWay customers can have complete trust and confidence in the independen­t service we provide.’’

Ms Armstrong said the arrangemen­ts between the two organisati­ons meant FairWay would discuss feedback directly with the reviewer involved on each occasion.

Cases which required more discussion would be put on the agenda for monthly operationa­l meetings between FairWay and ACC.

‘‘Whether deliberate or not, this interventi­on by FairWay has the potential to influence the pattern of decisions in ACC’s favour,’’ she said.

The feedback communicat­ions between ACC and FairWay were released under the Official Informatio­n Act last week.

Ms Armstrong said she had never received any feedback informatio­n from ACC when she had asked it for a full file, and she believed she should have.

‘‘The complete failure to give any insight into these communicat­ions on an individual file, when we have asked for disclosure, appears deliberate,’’ she said.

‘‘It places lawyers such as myself who have believed in the independen­ce of the process in a challengin­g position about what I advise clients about FairWay’s independen­ce.’’

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