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New corruption probe rocks Italy's healthcare system
by Robert Galbraith

MILAN, July 15 (APM) - A new probe into alleged corruption in the Italian region of Abruzzo has rocked the country's already fragile healthcare system.

Police have arrested at least 36 people including Ottaviano del Turco, the governor of the region and a former finance minister. Others held include the region's serving health assessor and two of his predecessors.

They have been accused of corruption, criminal association, fraud and a number of other crimes related to their administration of the Abruzzo health service.

During a press conference on Monday, the public prosecutor's office in the Adriatic city of Pescara said that it has evidence of extensive corruption including kickback payments of more than 15 million euros.

It ordered the arrests because it feared that evidence would be destroyed or altered and to ensure that any criminal activity could not continue.

Italian news sources said that the prosecutor's office suspects the kickback payments were made so that private clinics were favoured in health policy decisions.

According to the local media, an ongoing investigation into the region's healthcare finances has focussed on debt restructuring measures worth 1 billion euros.

HEALTH SYSTEM UNDER PRESSURE

The latest scandal comes at a difficult time for Italy's health system. The head of the medicines agency AIFA has been replaced after corruption allegations related to drug marketing authorisations.

Lombardy's health service, reputed to be one of the most efficient in Italy, was shaken by accusations that doctors at a private hospital were performing unnecessary operations to boost reimbursement income.

The government is currently engaged in the difficult task of trying to find a way to balance the health system's accounts. Ratings agency Fitch said last week that it will need to cut 6 billion euros from health spending over the next four years if it is to achieve that objective.

A significant part of the required spending reductions are expected to come out of regional health budgets.

Abruzzo has one of the highest regional health spending deficits. It is reported to have had 682 million euros of healthcare debts at the end of 2005 despite being one of the smallest regions in Italy.

The government had been considering appointing a special administrator to put its finances back in order. It may be forced to take such action now because the most important health system administrators have been arrested.

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[12154] 15/07/2008 07:35 GMT - GENERAL

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