Mark Cormack relinquished his position on Capital Health Network's board after it decided against repaying any of the almost $1 million it received through the wage subsidy scheme, despite rising revenues.

The former ACT Health chief executive and Department of Health deputy secretary declined to comment when contacted by The Canberra Times, but well-placed sources have confirmed his opposition to the organisation's stance on JobKeeper was the reason for his departure.

Capital Health Network helps deliver primary health services in the nation's capital.

It has been involved in numerous aspects of Canberra's pandemic response, including helping with COVID-19 testing, vaccination and the distribution of personal protective equipment.

The not-for-profit organisation is almost entirely funded by government grants.

Organisations including Capital Health Network were eligible for the first phase of the wage subsidy - which paid workers $1500 per fortnight - if they predicted their revenues would fall in the early months of the pandemic.

The $90 billion scheme saved an estimated 700,000 jobs in the first year of the pandemic and has been heralded as an economic saviour by the federal government.

But it has been widely criticised amid revelations billions of dollars were given to companies which didn't need it to stay afloat.

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Some companies either never experienced the forecast decline or saw revenue increase, resulting in billions of taxpayer dollars being handed to organisations which thrived during the crisis.

The Morrison government controversially refused to include a "claw-back" mechanism in the scheme, meaning companies which turned a profit after receiving the taxpayer-funded subsidy weren't forced to repay it.

The Canberra Times last week revealed Canberra Grammar had doubled its annual profit while pocketing JobKeeper.

Capital Health Network received a total of $923,000 in JobKeeper wage subsidies across the 2019-20 and 2020-21 financial years.

Financial records show the organisation's revenue was $18.6 million in the 2019-20 financial year, up $2 million on the previous year. It posted a small loss that year.

In the past financial year revenue rose to $22.6 million, with Capital Health Network recording a small surplus of $9130.

The amount of wage subsidies which the organisation received, and the small profit it turned, were small compared to other businesses.

Nevertheless, the board's refusal to repay the taxpayer handouts was enough to cause Professor Cormack's resignation.

Professor Cormack was appointed as a board director in January 2021.

In a statement to The Canberra Times, Capital Health Network chief executive Megan Cahill confirmed Professor Cormack had resigned for what she understood to be "personal reasons".

She also confirmed that the organisation had not repaid any or all of the JobKeeper it received over the past two financial years.

But she defended the organisation's receipt of the handouts, saying it helped keep staff employed amid increasing community demand for services.

"Capital Health Network [CHN] met the eligibility criteria for the JobKeeper subsidy," she said.

"CHN is thankful to the Australian government for the JobKeeper program as it has allowed CHN to continue to keep people employed to support the delivery of primary health services in the Canberra community. During COVID-19 the use of these services by the community has increased.

"CHN sought external advice to confirm the organisation was eligible and CHN has met the eligibility and reporting requirements."

Do you know more? Contact dan.jervis-bardy@canberratimes.com.au

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