U of Louisville docs accused of using Medicaid funds for bonuses

Sen. Tim Shaughnessy (D-Ky.) said that University of Louisville medical school physicians inappropriately used $4.8 million in Medicaid state funds for their own personal bonuses, diverting money away from indigent care, reports The Courier Journal. Even more, the Senator said the physicians used another $5.2 million for electronic records that would earn additional bonuses, according to the article.

Shaughnessy obtained a report from the office of Attorney General Jack Conway. A spokesperson at the attorney general's office said the report only verified that University of Louisville physicians indeed were paid $4.8 million, although Sen. Shaughnessy insisted the funds were used for bonuses, according to the article.

Known as the repeat of the "Passport scandal," the accusations against University of Louisville physicians are similar to claims that nonprofit Medicaid managed care organization, Passport, transferred $30 million in funds to University of Louisville, University Physicians Associates, and other board members, according to the article. The groups repaid most of the funds to settle allegations by the Attorney General, who established the Passport transfer was illegal.

Shaughnessy calls on the public university boards to take increased oversight to prevent such alleged misuse of funds.  

For more information:
- read The Courier Journal article

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