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Karo financial risk assessment tool

Please note: This tool is currently unavailable as at 01/03/2019. We aim to design another option for this once NES is fully implemented in the sector.


Karo has developed an invaluable tool to enable PHOs to easily assess both their own and their practices' financial risk from a Ministry of Health PHO audit. The tool is a 'dummy audit' that assesses a sample of enrolment forms from each practice, finds the errors and calculates the potential financial penalties across the whole practice and PHO.

The main driver for the development of this tool is the MoH Audit and Compliance Team's policy of sampling all practices at a level of +/-5% statistical significance. This enables them to justify extrapolating the findings of the audit out to the full register. It is not uncommon for practices to be at risk of penalties of $20,000 - $50,000. 

Four easy steps

Using the tool involves four easy steps:

  1. Contact Karo (This email address is being protected from spambots. You need JavaScript enabled to view it. or phone 04 384 1177) for a random sample of 100 patients from the practice.  (Although a smaller sample size than in an actual audit, 100 patients has sufficient statistical significance for risk assessment purposes.)
  2. Send the list to the practice manager and ask for enrolment forms to be located.
  3. Have an independent person go to the practice and complete the online data entry screen for each of the 100 patients.
  4. Once the data entry is complete, run the online reports to find out what your financial risk is.

Who should use the tool


  • Unless you are confident that all your practices' enrolment processes would pass a MoH audit, we advise you to use our tool now so that you have time to fix any problems before a real audit occurs. Otherwise you may end up being asked to pay back thousands of dollars.
  • PHOs that have been audited recently would still benefit from running the tool once a year to make sure their enrolment processes stay on track. 

Cost of the tool

  • $180 per practice for Karo register management clients
  • $250 per practice for clients not currently using Karo's register management service