Riverina health service in recovery

Acting Registrar of Indigenous Corporations, Mr Gerrit Wanganeen, has today appointed a special administrator to Riverina Medical and Dental Aboriginal Corporation.

Incorporated in 1988 and commonly known as ‘RivMed’, the corporation is a primary health care service that also provides oral health care, out-of-home care and family and community programs in Wagga Wagga and surrounding areas. According to RivMed’s audited financial statements for the year ended 30 June 2021, it generated over $13.2 million of revenue and other income. Of that, approximately 80 per cent came from operating grants funded by the Commonwealth and NSW governments.

An examination of the books of RivMed completed in October 2021 identified a range of governance and operational concerns. Shortly afterward, the corporation's members passed a vote of no confidence in the board, and elected new directors.

‘Evidently, RivMed has been dysfunctional for some time,’ said Mr Wanganeen. ‘As well as industrial disputes, there has been a high turnover of senior and other staff, and difficulty securing GPs, resulting in significant costs for using locums. There is no evidence that RivMed was operating in accordance with an agreed model of care during the examination period. The incumbent board has recently implemented one, but significant issues persist.’

In November, the corporation’s out-of-home care regulator completed an on-site assessment and advised it had found that RivMed was providing children and young people with an inadequate standard of care. As a result, RivMed’s caseload of 54 contractual placements was significantly reduced—a total of 34 children and their carers are being transferred to another provider.

Board members elected in November 2021 were not on the board during the examination period, but were tasked with resolving a range of problems. In response to ORIC’s notice to show cause as to why a special administrator should not be appointed to RivMed, the board unanimously agreed to the appointment, describing their decision as in the best interests of the members, the community and the corporation.

Peter McQuoid from PDM Consultancy has been appointed special administrator until 26 August 2022.

Background

RivMed was also in the news 4 years ago, when a former CEO was jailed for authorising payments to herself to which she was not entitled. There is no direct link between that history and the current situation.

MR2122-09