A Sydney hospital embroiled in a fraud scandal has been accused of offering a $500 incentive to boost private patient "conversions" in the public emergency room and training staff to sign consent forms on behalf of patients too sick to pick up a pen.

According to a person with knowledge of the case, who spoke on condition of anonymity, Northern Beaches Hospital management trained staff in the patient liaison team to "sign or initial for patients who were too unwell to do it themselves".

The Northern Beaches Hospital allegedly trained staff to sign forms on behalf of sick patients. Credit:Gabriele Charlotte

"Our target rate was to get 45 per cent conversion to private," the person said.

"If we succeed in this goal per quarter term we would be given as a gift, a $500 Visa card voucher."