The University of Medicine and Dentistry of New Jersey agreed to pay the U.S. government $2 million to settle allegations of double-billing Medicaid.
According to a False Claims Act lawsuit and a previously resolved criminal complaint, UMDNJs 444-bed University Hospital in Newark billed Medicaid for outpatient physician services that were also billed by faculty physicians at the hospitals outpatient centers.
This settlement agreement relates to inappropriate actions and poor management decisions made during a period between 1993 and 2004, UMDNJ said in a written statement. Today, UMDNJ is a changed institution. Our new leadership team has diligently implemented numerous reforms that reflect the universitys full commitment to exemplary corporate citizenship, corporate governance and the highest principles of integrity and professionalism.
The whistle-blower who initiated the lawsuit, psychiatrist Steven Simring, is set to receive about $800,000 of the $2 million payment to the federal government under the False Claims Act. In 2005, the university paid $4.9 million to the U.S. and New Jersey as part of a deferred prosecution agreement with the U.S. attorneys office in Newark. At the end of 2007, UMDNJ was released from the agreement and the cloud of criminal charges after two years under the lens of a federal monitor.