NJ university pays $2M False Claims settlement

The University of Medicine and Dentistry of New Jersey has agreed to pay the U.S. government $2 million to settle charges that it double-billed Medicaid, just one in a long string of corruption and criminal charges that have dogged the institution.

A False Claims Act suit, along with a previous criminal action, alleged that UMDNJ's University Hospital had billed Medicaid for outpatient physician services that were also billed by faculty physicians working at its outpatient clinics. The suit arose from actions taken between 1993 and 2004, which executive say are no longer taking place as a result of varied reforms to its operations.

Psychiatrist Steve Simring, who initiated the lawsuit, will get an $800,000 of the settlement as his reward for reporting the facility to the government.

Previously, in 2005, the University paid $4.9 million to the U.S. and state of New Jersey as part of a deferred prosecution agreement.

To learn more about the agreement:
- read this Modern Healthcare piece [1] (reg. req.)

Related Articles:
UMDNJ faces corruption fallout [2]
UMDNJ over billed Medicaid by millions [3]