UMDNJ and Corruption: Perfect Together

This isn't a surprise: Federal and state investigators continue to find corruption and kickbacks at UMDNJ.

The state's medical university took in $36 million in illegal Medicare and Medicaid payments as part of a kickback scheme designed to bolster its troubled cardiac surgery program, and top school officials conspired to cover it all up, according to the school's federal monitor.

The scheme involved 18 cardiologists at the University of Medicine and Dentistry of New Jersey who were given essentially no-show teaching jobs at salaries of $150,000 or more. In return, they were expected to refer patients to the cardiac surgery program, the monitor alleges in a report sent to the U.S. Attorney and expected to be released tomorrow. The doctors were paid almost $6 million over four years.

This is a surprise (okay, it shouldn't be, but the corrupting influences must be in the water or something): The interim President who was brought in to clean up the University is in trouble for stonewalling and potentially covering up for other malfeasance.

He found that the illegal activity involving hundreds of patient referrals "persists to this day," despite a $2.2 million settlement by the university in June of a whistle-blower's lawsuit. As recently as July, UMDNJ entered into a new contract for $225,000 with another cardiologist, according to the monitor.

Stern's report also directly criticized UMDNJ Interim President Bruce C. Vladeck, who was hired this year to clean up the university. The report says Vladeck misled investigators during interviews with the monitor's office, and tried to downplay the kickback allegations.

The report's findings were outlined by three sources, who requested anonymity because they were not authorized to speak publicly about it. Stern declined comment.

The UMDNJ is the largest health care university center in the nation, and it has been rife with trouble for years. From kickback schemes to no-show jobs and Medicaid fraud resulting in federal monitoring, the University is in serious trouble and no one seems willing or able to clean up the mess.

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