Health Insurance Organization investigates supplier fraud

The Health Insurance Organization (HIO) in Cyprus has terminated its contract with a medical supplier after discovering an organized attempt to defraud the national health system (Gesy). The supplier, contracted to provide specific orthopedic disposables, allegedly delivered unapproved products from a different manufacturer. Investigations revealed that labels on the products were tampered with to hide their origin from the digital monitoring system. Following the discovery through system audits and field inspections, the HIO removed all products associated with this supplier from its catalogs. The organization has instructed hospitals to use alternative, approved supplies to ensure patient care remains unaffected. The case has been referred to the police for criminal investigation, while the HIO conducts further audits to see if other products were also affected. A similar incident occurred in October 2025, involving a recovery of 20,000 euros and a 5,000 euro fine, demonstrating a recurring challenge for the system.