Queensland woman accused of defrauding public hospitals through a medical device kickback scheme

Relevant impacts:  Human Impact, Reputational Impact, Industry Impact

A joint investigation by the Crime and Corruption Commission (CCC) and the Office of the Health Ombudsman (OHO) has uncovered an alleged $2.2 million kickback scheme within the south-east Queensland public health system involving Princess Alexandra Hospital and medical device supplier Medivance. Finance manager Alana Clayton, 39, has been charged with 2 counts each of fraud and official corruption.

Investigators allege that between 2016 and 2019, Ms Clayton helped facilitate improper payments from Medivance to 2 surgeons in exchange for influencing which surgical devices were selected for use in public hospitals. One surgeon is further accused of being a part owner of Medivance, placing him in a position to profit directly from the scheme. Medivance’s director and another individual have also been implicated. Evidence gathered suggests that Medivance falsified documents to hide the arrangement, though no direct harm to patients has been identified.

The case reveals significant weaknesses in procurement oversight, conflict of interest management and supplier transparency. It highlights the need for rigorous monitoring of purchasing decisions, mandatory disclosures, enforcement of separation between clinical decisions and supplier relationships, and organisational cultures that support whistleblowers. Even in the absence of patient harm, misconduct of this nature can undermine trust in clinical impartiality and stewardship of public funds.

Charges were issued in late 2025. All accused individuals have appeared in the Brisbane Magistrates Court, received bail and await further proceedings.