IDX: Media reports ineligible billing practices at IDX

Research evidence excerpt

IDX: Media reports ineligible billing practices at IDX

EQUITY RESEARCH QUICK TAKE

Royal Bank of Canada, Sydney Branch

Craig Wong-Pan (Analyst)

Taj Wesson, CFA (Associate)

June 9, 2026

Integral Diagnostics Ltd

Media reports ineligible billing practices at IDX

ASX: IDX | AUD 2.00 | Outperform | Price Target AUD 3.05

Sentiment: Negative

The ABC has this week reported IDX has been billing Medicare for some services which are ineligible for reimbursement. While it

is not entirely clear if these issues are linked, we believe the article raises two issues:

1. IDX's radiologists signing off on referrals that enable Medicare rebates for ineligible services (i.e. a radiologist co-signing a

referral that they are not directly involved with and the treating specialist is ineligible to bill Medicare).

2. Incorrect billing at Apex Radiology (a subsidiary of IDX), with a specific reference to the Kalgoorlie Health Campus and WA

Country Health Service (WACHS) staff.

IDX's response to the media article states that it is not aware of any inappropriate Apex Radiology billing practices at the Kalgoorlie

Hospital. IDX also clarified that Apex Radiology has an agreement with WACHS to provide radiologist reporting services where

it receives a fee from WACHS and does not directly benefit from Medicare at the Kalgoorlie Hospital. IDX disclosed diagnostic

imaging at the Kalgoorlie Hospital is performed by WACHS staff with the exception of one MRI technician who is provided by

Apex Radiology. Out of an abundance of caution IDX said it will conduct an independent audit to confirm there are no billing

anomalies that relate to Apex Radiology and it will update the market on the outcome of the independent audit. Therefore we do