We have reported extensively on the MedCo scheme within BC Disease News, particularly in relation to the controversial use of shell companies by Medical Reporting Organisations (MROs). Most recently in edition 152, we reported that the Ministry of Justice (MoJ) intended to introduce a new definition of MRO and related qualifying criteria.
This week the MoJ has published revised qualifying criteria for MROs. These will enable MedCo to ensure that MROs currently registered on the system, and MROs applying to register, are properly constituted businesses with satisfactory systems and sufficient resources in place to operate to the minimum required standards.
The new criteria also includes a new definition of MRO and the MoJ state that it is:
‘…designed to demonstrate the types of MRO model acceptable for the purposes of providing medical reports via MedCo. Under the definition, organisations set up purely as a ‘shell’ to gather instructions and forward them on to a related organisation are not allowed’.
The new criteria requires all aspiring MROs to provide documented assurances that they are independent, properly staffed and resourced, and directly and solely responsible for all work associated with receiving instructions. Additionally, MROs must also put forward a ‘financial instrument’ of £20,000 to show they have sufficient funds available to remunerate medical experts who are instructed to write reports.
MedCo has said that it will be contacting all ‘shell companies’ direct. It will also apply the new criteria in auditing MROs that are already registered on the system and when considering applications from MROs to register on the system. This is to ensure that MROs do not undermine the system’s random allocation model.
Failure to meet the revised criteria will result in removal from the MedCo system and rejection of applications to be registered.
It is hoped that this will present major tier 1 MROs from creating dozens of shell companies in order to farm more work.
The full set of Qualifying Criteria can be found here.
