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German coronavirus testing centres under investigation for fraud

German coronavirus testing centres under investigation for fraud

Local prosecutors have launched investigations into several companies, following news reports suggesting that some coronavirus testing centres in Germany have been inflating their numbers, so as to claim more money from the government.

Investigating corona testing centres in Germany

Local authorities in various regions around Germany have launched investigations into several companies that operate coronavirus testing centres around the country. In an effort to boost testing against the coronavirus in Germany, the government made testing free back in March and announced it would reimburse testing companies 18 euros for each test they conducted.

According to a joint investigation by the broadcasters NDR and WDR and the newspaper Süddeutsche Zeitung, the testing centres have not had to prove how many people they’ve tested when applying for government reimbursement. “They just have to send the number of tests (carried out), without any proof, and they are wired the money soon after,” the investigation stated.

The media outlets, suspecting foul play, had journalists count the number of people who arrived at the testing centres and then compared these numbers to the numbers the companies gave to the government for reimbursement.

COVID testing company under fire

Prosecutors have now launched an investigation into MediCan, which runs a total of 54 centres in 36 cities throughout North-Rhine Westphalia. The company was raided by police in Bochum on Friday, as well as carrying out a surprise inspection of a testing centre in Cologne. According to the investigators, they searched both offices and private residences.

The investigations suggest that the company has in fact been padding its figures to claim more money. According to investigators, one centre in Cologne carried out 70 tests a day, but reported to have carried out 977. Another centre in the city of Essen also inflated their numbers, claiming to have carried out 1.743 tests despite only carrying out 550.

The owner of MediCan has hit back at the allegations, arguing that the false numbers were not those that had been registered by state insurance companies. "The tests carried out in some cities with several locations are registered in aggregate," MediCan said in a statement. This aggregation was done “in consultation with the relevant authorities.”

What’s next?

Local health authorities in Münster, Essen and Cologne have denied that they permitted test numbers to be shared across locations. In Münster, authorities have revoked MediCan’s ability to perform tests. Health Minister Jens Spahn has called for the involvement of tax authorities to monitor the system. "Most people have a very different respect for the tax office than they do for the health authority," he said.

Investigators also said that they were looking into, "two people in charge of a company based in Bochum on suspicion of fraud in connection with the billing of citizen tests to the Association of Statutory Health Insurance Physicians."

The media investigation revealed that the health authorities, as well as the statutory insurance companies that are in contact with testing centres, are not able to fully track the number of tests, which leaves room for people to take advantage.

William Nehra

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William Nehra

William studied a masters in Classics at the University of Amsterdam. He is a big fan of Ancient History and football, particularly his beloved Watford FC.

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