The Department of Veterans Affairs has launched a significant fraud crackdown, investigating the payments and invoices of 80 health treatment and medical report providers since July 2025. This follows a federal Senate inquiry that heard allegations of companies charging unreasonably high commissions, fraudulently billing DVA, and making claims for unproven medical conditions.
Providers Under Scrutiny
DVA funds a wide range of health treatments for eligible veterans, war widows, widowers, and dependants. The providers under investigation include psychologists, general practitioners, osteopaths, social workers, and optometrists. It is important to note that there is no suggestion these providers or companies have acted unlawfully or improperly at this stage.
Manual Payment Processes Implemented
Since July 1, 2025, DVA has placed 46 health treatment providers on manual payment processes. This means the department manually checks all claims before they are paid. Of these, 20 have been removed from reviews, and nine have agreed to remedial action plans to ensure future compliance.
A DVA spokesperson stated, "Subsequent claims by these providers are closely monitored." This approach allows the department to examine each service claimed, rather than simply paying bills upon arrival.
Medical Reports Under Review
The department has also reviewed invoices from 34 companies providing medical assessments and reports since July 1 last year. These medical reports are crucial as they support claims made by veterans, including lump sum compensation payments.
In October, it was revealed that nine major companies writing medical reports for veterans were issued compliance notices. During a December Senate hearing, DVA deputy secretary Andrew Kefford said close to 75 percent of invoices from some providers appeared to be fraudulent.
Veteran Impact and Support
Mr Kefford noted that about 3,000 veterans have been impacted by audits into medical report companies. This includes clients of The Rosemary Centre, a large psychiatric report writing company registered in Kingston, ACT.
Impacted veterans are referred to MLCOA, an independent medical report writing company contracted by DVA, for re-assessment or reconsideration of their reports. DVA reported that the average wait time for an MLCOA medical report in 2024-25 was 32 days.
A DVA spokesperson emphasized that the department "does not pause any veteran's legitimate claims due to auditing or investigations into providers" and actively engages veterans to ensure they provide the required evidence.
Referrals to Authorities
The spokesperson confirmed that DVA has made referrals to regulatory bodies including the Australian Health Profession Regulatory Agency (AHPRA), Therapeutic Goods Association (TGA), Australian Competition and Consumer Commission (ACCC), and the Australian Institute of Social Workers.
During the Senate inquiry, Mr Kefford revealed that the Australian Federal Police (AFP) are investigating "a number of matters ... relating to our business." The department collaborates with other Commonwealth service delivery agencies through the fraud fusion taskforce.
Previous Cases and Ongoing Investigations
In September last year, the AFP charged the owner of a Perth-based occupational business for allegedly fraudulently claiming $7 million from DVA. This case highlights the seriousness with which authorities are treating these matters.
The department has not named any specific companies or providers that have been audited or reviewed, maintaining confidentiality during ongoing investigations.
This fraud crackdown represents a significant effort by DVA to ensure proper use of funds dedicated to veteran support, while maintaining services for those who legitimately need them.
