Theft, fraud in Vic's health sector: IBAC

Drug theft, malpractice cover-ups and fraudulent billing are some of the dodgy practices uncovered in Victoria's public health sector, the state's corruption watchdog says.

The Independent Broad-based Anti-corruption Commission has identified serious corruption risks, and "significant and entrenched" bullying and harassment across the sector.

"Theft of controlled drugs from health services, for personal use or to be sold for financial gain, is identified as a significant corruption risk," IBAC's chief executive officer Alistair Maclean said in a report released on Wednesday.

Amid an increase in demand for and misuse of prescription medications such as Valium, Morphine and Xanax, health staff's access to the drugs created "a risk of corruption" given inadequate procedures and controls, Mr Maclean added.

The report follows revelations that 15 Victorian ambulance workers were caught trafficking and using illicit drugs, stealing medication from ambulances and taking intravenous bags to treat hangovers.

One paramedic was dismissed and eight resigned under investigation while the remainder received formal warnings.

IBAC's report also found the "strong hierarchical culture" within the medical profession risked enabling behaviours that drove or obscured corruption.

Bullying and harassment was found to be significant and entrenched across the sector. Some agencies charged with looking into complaints said hospitals had pushed back against investigations.

"Many health sector complaints received by IBAC contain elements of bullying and harassment in addition to, or as part of, alleged corruption," the watchdog said.

IBAC received 62 complaints and 141 allegations about the public health sector in the 2016-17 financial year.

But IBAC said the lower-than-expected numbers could be because patients and practitioners were confused about where to lodge a complaint - the national health regulator, the police, government departments or health services themselves.