University Hospital Double-Billed Medicaid, Returns Millions
June 19, 2009
On June 9, 2009, the Department of Justice reported the settlement of a False Claims Act case involving the University of Medicine and Dentistry of New Jersey (UMDNJ). Over a period of 11 years, the University’s hospital submitted duplicate bills to Medicaid for outpatient physician services and outpatient center doctor work. In effect, the government was double-billed. UMDNJ has agreed to pay the United States $2 million to resolve these allegations of federal civil fraud.
The case was initiated by a whistleblower, Dr. Steven Simring, who will receive $801,000 of the total federal recovery. In addition to the $2 million to be recovered by the government through the civil case, UMDNJ paid $4.9 million in a criminal case resolved prior to the civil case ruling. Half of the criminal settlement was to be returned to the federal Medicaid program.
“Today’s settlement demonstrates that the Department of Justice will not tolerate fraud on our Medicaid programs, which were created to serve our nation’s low-income families, children and seniors,” said Tony West, Assistant Attorney General for the Justice Department’s Civil Division. “We will continue to work with our partners at the Department of Health and Human Services Inspector General’s Office to protect the integrity of our public health programs.”
If you are witnessing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
