On 9 February 2021, the Chief Executive Medicare instituted civil proceedings in the Federal Court of Australia against Specialist Diagnostic Services Pty Ltd (SDS) on behalf of the Commonwealth of Australia.
It is alleged that SDS contravened section 23DZZIL(1) of the Health Insurance Act 1973 (Cth) (the Act). The alleged contraventions relate to leases for pathology approved collection centres located at Castle Hill and Kingswood in NSW. It is alleged that the rent SDS agreed to pay under each of the relevant lease agreements was not a permitted benefit within the meaning of section 23DZZIF of the Act.
The Commonwealth is seeking declarations, pecuniary penalties and costs.