GenesisCare breaches divide local cancer services industry
The national cancer services industry body has collapsed over a disagreement about whether GenesisCare’s self-reported breaches are an industry-wide problem, as the latter’s negotiations with the health department about its bungled billings drag on.
The crumbling of The Radiation Therapy Advisory Group is the most public representation of division in the local industry following GenesisCare being placed in US Chapter 11 bankruptcy in early June.
Reaching agreement and quantifying the amount owed to the Australian government relating to its failure to offer bulk billing in clinics where it received government funding for expensive equipment is a key plank of GenesisCare emerging from Chapter 11.
A separate billing issue linked to its in-house EasyPay billing system, which is no longer operating, also needs to be resolved. It was vexed by issues with the way it calculated out-of-pocket costs for patients.
GenesisCare declined to comment on how much it might owe the government, but industry sources believe this could run into hundreds of millions of dollars.
As part of exiting bankruptcy protection, GenesisCare must also finalise the sale of its troubled US assets. The auction was pushed out by a week until October 25, and will be sold in parts.
GenesisCare was founded in Brisbane by Dan Collins in 2005 and grew into a global company with 440 clinics. It was owned by KKR, China Resources, and its employees. GenesisCare made a big bet on the US market, which was its undoing from a peak valuation of $5 billion.
GenesisCare told investors that failure to offer bulk billing after accepting government funding for cancer care equipment was an industry-wide issue.
Just two weeks after installing a new chief executive, David Young,
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