Allegations of unethical practices surface against Bergman Ross & Partners
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In a significant development within the healthcare sector, Bergman Ross & Partners (BRP) is facing serious allegations of unethical business practices and unprofessional conduct at Netcare.
A court application filed on January 8, 2025, at the High Court in Johannesburg, reveals that Dr Thapelo Motshudi, a registered Specialist Radiologist with the Health Professions Council of South Africa (HPCSA), raised serious concerns against BRP, a radiology practice based in Cape Town.
According to court documents, which are accompanied by a formal complaint to the HPCSA, Dr Motshudi identified an opportunity to establish a radiology practice at Netcare Pinehaven Hospital in Krugersdorp.
However, the tender requirements mandated a substantial R30 million bank guarantee, a financial commitment he could not meet alone.
In light of this challenge, Dr Motshudi approached BRP, led by Dr Jack Bergman and Paul Koski, proposing a partnership in which both parties would share ownership of the practice equally.
However, the situation took a turn when BRP allegedly unilaterally appropriated 74% of the practice's equity and revenue, undermining their initial agreement.
“BRP has surreptitiously, and without my consent, appropriated 74% of the equity in our co-owned radiology practice, thereby reneging on our verbal agreement that we would each own 50% of the incorporated company,” Dr Motshudi stated.
“It has now become evident that even the equal shareholding we initially envisioned, let alone the undeserved 74% they claim, transgresses Regulation 706, which stipulates that a company cannot own more than 24% of a medical practice.”
The complaint to the HPCSA and the court documents asserts that both parties had a verbal agreement, corroborated by recorded conversations, to maintain a 50/50 ownership structure.
Under this arrangement, BRP was responsible for providing administrative support and securing the bank guarantee, while Dr Motshudi would manage the day-to-day operations alongside other radiology associates.
“The conduct of BRP is unethical and undermines the principles of fairness and equity that our profession stands for. I have been left with crumbs while they take the lion's share of the revenue,” Dr Motshudi expressed in his complaint.
He argues that BRP's actions violate ethical standards by claiming a disproportionate share of the practice's revenue without justifiable involvement in its operations.
Dr Motshudi has called for an urgent review by the HPCSA to assess the ethical implications of BRP’s conduct and to provide guidance on the appropriate course of action.
His legal representative, Boyce M. Mkhize, emphasised the urgency of the situation, stating: “We seek a swift determination from the HPCSA to address this unethical conduct and to protect the rights of practitioners who may find themselves in similar situations.”
When approached for comment, Priscilla Sekhonyana, Head of Corporate Affairs at the HPCSA, confirmed that the matter is under investigation.
“The HPCSA has also been served with court processes and cited as an interested party. We will maintain a watching brief during court proceedings,” she said.
Neither Dr Bergman nor Paul Koski responded to requests from IOL for comment.
In January, the B-BBEE Commission acknowledged receiving a complaint related to this case.
“Please note that the handling of complaints and investigation procedures of the Commission are bound by law (the B-BBEE Act), which precludes the Commission from disclosing details of complaints or complainants before the finalisation of all matters,” the Commission stated.
IOL reached out to Netcare, which stated that Netcare Pinehaven Hospital had not been made aware of any concerns from the hospital's independent radiology practices.
“It would be inappropriate for Netcare or the hospital to intervene in the operations of independent healthcare providers,” said Nolan Daniels, Regional Director of Netcare Gauteng South West Region.
“However, given the nature of the allegations you have brought to our attention, we have taken the initiative to make inquiries and are setting up a meeting with the business owners to discuss these concerns.”
Daniels emphasised that the hospital respects the independence of practitioners and does not interfere with organisational matters.
“We cultivate strong relationships with our independent healthcare service providers and suppliers to ensure our patients consistently have access to quality services. We engage with them regularly to collaborate on solutions and identify potential risks, thereby maintaining our standards of care and sound corporate governance,” he added.
As this case unfolds, the healthcare community and regulatory bodies are closely monitoring the situation, highlighting the importance of ethical practices in the medical field.
thabo.makwakwa@iol.co.za
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