The Westpac Rescue Helicopter Service's northern NSW operation has been accused of having a "clique culture" that targeted people who raised concerns.
A NSW parliamentary inquiry report, released on Wednesday, revealed "confidential allegations" of the helicopter service "not investigating reports of multiple serious safety breaches".
The report said the allegations against the helicopter service were "disturbing".
They detailed "serious non-compliance with safety standards" and "wilful disregard for safety breaches, alongside systemic sexism, bullying and harassment".
"In an already high-risk, high-consequence healthcare environment, such failures are inexcusable," the report said.
The report found that the "use of non-disclosure agreements with former staff has prevented transparency, silenced potential whistleblowers and delayed the rectification of issues".
The inquiry recommended that NSW Ambulance not extend its contract with the northern NSW operation, unless it was satisfied with workplace safety.
The inquiry report also recommended that NSW Ambulance ensure a transparent investigation into workplace safety and staff conduct at the helicopter service.
A NSW Ambulance spokesperson said it had "consistently and repeatedly expressed our expectations that we will receive a full and unredacted report" from the investigation.
"NSW Ambulance has not progressed contract extension discussions with [the northern NSW helicopter service], while it awaits the full and unredacted report," the spokesperson said.
The inquiry report said the helicopter service "provides critical care aeromedical services" across northern NSW under a 10-year contract with NSW Ambulance that began in 2017 and is due to conclude in May 2027.
The parliamentary inquiry that examined the failed Calvary Mater hospital public-private partnership (PPP) also considered the helicopter service arrangement.
The inquiry said the helicopter service also operated under a PPP.
"The private operator is responsible for providing the aircraft, aircrew, engineers, maintenance personnel and ground support," the inquiry report said.
"NSW Health and NSW Ambulance provide the clinical workforce. NSW Ambulance is responsible for the governance and oversight of the contract."
The parliamentary committee running the inquiry heard "multiple accounts of deficiencies in safety record management, workplace bullying and harassment, limited transparency, and a culture in which staff felt unable to raise concerns".
"An independent review into allegations of safety failures and workplace misconduct is currently under way, although the review's independence was questioned by some participants," the report said.
The report said a significant concern was "the extensive use of non-disclosure agreements and confidentiality provisions following staff departure" from the helicopter service.
"Participants voiced strong concerns regarding the independence of reviews commissioned by the organisation to investigate the allegations of inappropriate workplace conduct and bullying," the report said.
The committee received evidence suggesting "significant governance failures" at the helicopter service, "particularly regarding the reliability of documentation".
The committee heard evidence from multiple individuals of a workplace culture at the helicopter service "characterised by bullying, toxicity and psychological abuse".
Participants described an environment where a "clique culture among senior management and human resources led to the targeting of individuals".
These people had sought to "ensure professional standards were met or raised compliance concerns".
"This manifested in verbal insults and mental abuse directed at staff which was frequently minimised by management as 'just a bit of fun', despite the profound distress caused to those targeted," the report said.
Witnesses reported that senior executives "expressed open hostility towards whistleblowers".
"In some instances, staff reported receiving personal threats for highlighting procedural failures or advocating for colleagues," the report said.
The committee received "deeply concerning reports of inappropriate sexualised conduct within the service".
"Witnesses described a workplace where sexual harassment was directed at both female medical and operational staff, including accounts of non-consensual physical contact during professional functions," the report said.
"They further attested that senior management failed to take decisive action when these incidents were reported, instead minimising or joking about the behaviour."
The committee heard that "this environment of normalised harassment contributed to significant psychological harm to staff and led to formal complaints being lodged with SafeWork NSW".
NSW Health Minister Ryan Park was asked about the helicopter service issue on Wednesday.
Mr Park said the service's staff had raised "many issues" that led to a "very public incident around what is happening at that particular service".
"We've made it very clear to that organisation that NSW Ambulance wants and expects an unredacted report into the issues that they were investigating," Mr Park said.
"I think more importantly than ambulance expects it, the community expect and deserve it.
"From there, we will enter into negotiations or a process around what the next iteration of that contract looks like."
In November, the helicopter service's chief executive Steven Underwood said he would not tolerate "harassment of any type, bullying, inappropriate behaviours or any kind of discrimination".
"We will not compromise on the safe and effective delivery of our world-class aeromedical and search and rescue capability. We are safe to operate," he said.
