Resthome admits overcharging

Birkenhead Lodge Care home. File photo / Herald on Sunday

The owner of a controversial Auckland rest home has admitted overcharging elderly residents for their medical care.

In some cases residents were charged many times the genuine cost of medication, were billed more than the true cost of a doctor's visit and in one case charged for a doctor's visit that was free.

Savita Mistry was a registered nurse and owner-manager of Birkenhead Lodge Retirement Home.

The Director of Proceeding under the Health and Disability Act had taken a case before the Human Rights Review Tribunal against Savita Mistry, Vinod Mangubhai Mistry and Onewa Holdings Ltd (in liquidation).

In a recent decision, the tribunal said that the parties had agreed by consent that Savita Mistry had breached the code of Health and Disability Services Consumers' Rights.

The tribunal said that the relevant part of the code provided that: "Every consumer has the right to be free from discrimination, coercion, harassment, and sexual, financial or other exploitation."

The Director of Proceedings took the case on behalf of three residents who have been given name suppression.

One was charged $232 for medicines bought from a pharmacy for $98.80 between January 2007 and April 2008.

That resident was also charged $50 for a podiatrist's visit for which there was no record of any actual attendance, and in any event the maximum charge would have been $40.

The second resident was charged $970 for medicines between January 2007 and June 30, 2008, which were purchased from a chemist's for only $131.40.

As in the other cases, that resident had not agreed to pay more than the cost of the medicines.

This resident was also charged $510 for podiatrist attendances when there were records of only four attendances, with an actual cost of no more than $160.

The third resident was charged $75 per week for staying in a larger room between December 2007 and April 2009 when she no longer occupied the room after December 2007.

Between June 2006 and March 2008 she was charged $600 for podiatrist's visits when there were records for only three attendances with an actual cost of no more than $120.

This resident was also charged $60 for a consultation with a doctor on March 4 2008, for which Birkenhead Lodge was not charged.

The tribunal said that all other aspects of the relief claimed by the director on behalf of the residents had been resolved between the parties.

There was no issue as to costs.

The tribunal said it was satisfied Savita Mistry had failed to comply with legal, professional, ethical and other standards and had contravened the code.

In August it was reported that there were three official inquiries into the running of the rest home.

It was reported that the Waitemata District Health Board had appointed a temporary manager to run Birkenhead Lodge Retirement Home amid concerns about management and care provided to residents.

As well, the Health and Disability Commission had ordered three inquiries into the home.

Age Concern North Shore reportedly said at the time that it had been "repeatedly denied access" to the home as it tried to investigate complaints from residents and their relatives during the past three years.

- NZPA