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UMDNJ chief to press for change
The Star Ledger ^ | Friday, March 10, 2006 | BY TED SHERMAN AND JOSH MARGOLIN

Posted on 03/10/2006 6:52:03 AM PST by Calpernia

In his first interview since becoming interim president of the University of Medicine and Dentistry of New Jersey, Vladeck -- despite a calm, easygoing manner -- made it clear that more change is on the way.

(snip)

"The rules of the game in this place have changed, and they haven't been changed by us," he said. "Even though the state is our lifeblood, we cannot, as a matter now of law, engage in some of the kinds of behaviors that have existed in the past. Some of the kinds of things that have (been) reported -- that may have become standard operating procedure in the past -- we cannot do anymore."

The university is now operating under an unprecedented deferred prosecution agreement that was put in place in December, after the university was criminally charged with Medicaid fraud.

That agreement granted broad powers to a federal monitor, former federal Judge Herbert J. Stern, who now has oversight over the university's $1.6 billion budget and sweeping authority to open the university's books, recommend firing staff and make major reforms.

(snip)

(Excerpt) Read more at nj.com ...


TOPICS: Crime/Corruption; News/Current Events
KEYWORDS: healthypeople; healthypeople2010; johnson; robertwood; umdnj
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http://www.app.com/apps/pbcs.dll/article?AID=/20060309/NEWS03/603090389/1007
UMDNJ faces allegations of overbilling Medicaid by $70M



http://www.newsday.com/news/local/wire/newjersey/ny-bc-nj--umdnj0308mar08,0,7402337.story?coll=ny-region-apnewjersey
Troubled medical school facing more scrutiny over bills

The embattled University of Medicine and Dentistry of New Jersey is facing scrutiny over new accusations of Medicaid billing problems, according to published reports.

The state medical school may have overbilled the government by as much as $70 million to $75 million, The Record of Bergen County and The Star-Ledger of Newark _ both citing unnamed sources _ reported in Wednesday's newspapers.

(snip)

Stern's first report is due to the U.S. attorney at the end of March.



http://www.nj.com/news/ledger/index.ssf?/base/news-5/11417984673130.xml&coll=1
Clues point to new fraud at UMDNJ
Executive suspended over alleged $70M in Medicaid double billing

(snip)

While auditors are still trying to determine the extent of the problem, the amount involved far exceeds the $4.9million in fraudulent billing outlined in a separate federal criminal complaint against UMDNJ in December.

The university -- charged with knowingly double-billing Medicaid for the same services as its physicians -- avoided prosecution by placing itself under the oversight of a federal monitor. The state institution remains under an ongoing criminal investigation into political influence peddling, no-bid contracts, and sweetheart deals to insiders.

The new billing problems were uncovered last week, as part of an examination of the annual cost reports submitted to the Centers for Medicare & Medicaid Services, according to two officials with direct knowledge of the investigation.

(snip)

1 posted on 03/10/2006 6:52:04 AM PST by Calpernia
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To: Gabz; SheLion; Liz; floriduh voter; Coleus; OldFriend

UMDNJ/Robert Wood Johnson ping


2 posted on 03/10/2006 7:04:51 AM PST by Calpernia (Breederville.com)
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http://www.freerepublic.com/focus/f-news/1563271/posts?page=23#23
Healthy People 2010


This initiative was stimulated by President Clinton's commitment to eliminate disparities in health for racial and ethnic minority populations by 2010.


http://www.nidcr.nih.gov/NR/rdonlyres/D2C8F49F-400E-467E-ACF2-6255D6E9FDEA/0/Nadrc0900.pdf
DHHS OFFICE OF HEALTH PROMOTION AND DISEASE PREVENTION
AND THE HEALTHY PEOPLE 2010 INITIATIVE

(major snip)

Dr. Randy Wykoff, Deputy Assistant Secretary for Health for Disease Prevention and Health Promotion, DHHS, presented an overview of Healthy People 2010, including the Leading Health Indicators, and possible ways to maximize this initiative. Healthy People 2010 is coordinated by the DHHS Office for Disease Prevention and Health Promotion.

Dr. Wykoff noted that Healthy People 2010 is a comprehensive set of national 10-year objectives that are developed through a collaborative process involving both the public and private sectors. All the objectives are specific and measurable over time based on data. The document, published and distributed by the Federal Government, also is a statistical description of the health status of Americans, including racial and ethnic disparities; a textbook on current public health priorities; and an important part of the national strategic plan for improving health. Healthy People 2010 is the third iteration of an effort that began in 1979 with publication of the Surgeon General's Report on Health Promotion and Disease Prevention. Ever larger and more complex, this iteration has two overarching goals, 28 focus areas, 467 objectives, and 10 leading health indicators.

(major snip)

Grant Review

The Council considered 327 applications requesting $70,492,343 in total costs. The Council recommended
238 applications for a total cost of $31,211,337 (see Attachment II).

UMDNJ is a publicly interest member of this initiative.

Members:

r. Hillary Brode, University of Medicine and Dentistry of New Jersey (UMDNJ)- New Jersey Dental School, Newark


3 posted on 03/10/2006 7:06:30 AM PST by Calpernia (Breederville.com)
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To: Calpernia; The Foolkiller; Just another Joe; Madame Dufarge; Cantiloper; metesky; kattracks; ...
http://www.nj.com/news/ledger/index.ssf?/base/news-5/11417984673130.xml&coll=1
Clues point to new fraud at UMDNJ
Executive suspended over alleged $70M in Medicaid double billing

sweet      ~sarcasm!

4 posted on 03/10/2006 7:09:52 AM PST by SheLion (Trying to make a life in the BLUE state of Maine!)
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To: Calpernia

When they start putting people in jail then I'll believe they intend to change.


5 posted on 03/10/2006 7:10:53 AM PST by OldFriend (HELL IS TOO GOOD FOR OUR MAINSTREAM MEDIA)
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To: OldFriend

I totally agree OldFriend.


6 posted on 03/10/2006 7:18:42 AM PST by Calpernia (Breederville.com)
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Just wanted to give this quote a little more emphasis.

"The rules of the game in this place have changed, and they haven't been changed by us," he said. "Even though the state is our lifeblood, we cannot, as a matter now of law, engage in some of the kinds of behaviors that have existed in the past. Some of the kinds of things that have (been) reported -- that may have become standard operating procedure in the past -- we cannot do anymore."

7 posted on 03/10/2006 7:20:45 AM PST by Calpernia (Breederville.com)
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To: Calpernia

In other words, now that we are being watched we have to stop stealing from the state.


8 posted on 03/10/2006 7:27:02 AM PST by OldFriend (HELL IS TOO GOOD FOR OUR MAINSTREAM MEDIA)
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To: OldFriend

now that we are being watched we have to stop stealing from the state [our lifeblood] and they [the rules] haven't been changed by us.


yuppers.

Who do you think that was publicly being addressed to? It is almost like he was telling someone we have a problem here and it isn't our fault.

Obviously if this was a conversation amongst themselves, they wouldn't have had to make a public statement like that.


9 posted on 03/10/2006 7:33:05 AM PST by Calpernia (Breederville.com)
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To: Calpernia
Actually, now that we hve the brilliant Corzine in charge, I'm confident all corruption will come to an end.

Pay to play will be a thing of the past.

And companies like Prudential will not be asked to hire certain people in exchange for state business.

10 posted on 03/10/2006 7:56:15 AM PST by OldFriend (HELL IS TOO GOOD FOR OUR MAINSTREAM MEDIA)
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To: Calpernia

Why don't we just get rid of legislatures and just have judges, with the Governor/President as Chief Administrative Judge. Far fewer people to payoff that way. :-)


11 posted on 03/10/2006 8:34:28 AM PST by Mind-numbed Robot (Not all that needs to be done, needs to be done by the government.)
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Investigations so far:

* No-Bid Contracts, Often Resulting in No Documented Work -

"It is not just that university officials handed out contracts to politically connected people without any competitive bidding. What is more astonishing is how pervasive the practice was, with more than $700 million in no-bid contracts awarded over five years, and that it appears that some of the contractors did no perceptible work in exchange for their payments."

Example, Newark Star-Ledger noted that the school gave a $75,000 no-bid contract to Ronald White, a former top fund-raiser for former NJ Governor James E. McGeevey, but could provide no evidence he did any work for it: also, the school paid over $1 million over ten years to Chip Stapleton, a Republican consultant, to advise the university, but again the university cannot document that he did any work, either.

* Hiring Lobbyists to Influence the State Government, and Making Political Contributions -

"It is not just that the university hired influential lobbyists and consultants, ostensibly to promote its interests in Trenton - itself a rare step for a public university - but that it hired so many of them. The school, which receives more than $300 million a year from the state, went a step further in strengthening its political ties, giving campaign contributions to many elected officials, a nearly unheard-of practice whose legality has been questioned by some legislators."

Example, the Star-Ledger noted that the school gave a $10,000 campaign contribution to a "breast cancer group" linked to Newark Councilwoman Gayle Chaneyfield-Jenkins.

* Allowing Political Bosses to Make Decisions -

"It is not just that university posts were handed to people with powerful political connections and potential conflicts of interest - though the extent of that practice was impressive. University officials and politicians alike say that political bosses actually dictated to the university who received what jobs, and who was shoved aside."

Example, "Stephen N. Adubato Sr., a Newark power broker and president of the North Ward Educational and Cultural Center, has publicly taken credit for the ouster of Harvey Holzberg as university chairman. Stanley S. Bergen Jr., a former president of the university, and several other people tied to the institution and to state government, say that Mr. Adubato engineered the appointment of Mr. Petillo as chairman and then president - something that Mr. Adubato now vigorously denies. Last November, Mr. Petillo awarded a $95,000 no-bid contract to an organization run by Mr. Adubato."

* Health Care Organizations Seem to Operate with Little Oversight or Accountability -

"But lawmakers, watchdog groups and political scientists say the causes boil down to two basic factors: a relative lack of scrutiny at the university, and the unique political structure and culture of New Jersey."

* The Anechoic Effect -

"If people within government are not watching the doings of state agencies closely enough, the same may be true of those outside government." Furthermore, "But the newspapers in New York City and Philadelphia that are read by so many people in New Jersey have focused on the issue only occasionally, and the out-of-state television stations that dominate the state's airwaves have paid even less attention. And there may lie a reason the university long escaped scrutiny for practices that, in some cases, date back at least a decade."

* University under investigation by the US Federal Bureau of Investigation (FBI)

Newark Star-Ledger described how a burglar made away with a variety of records, but almost no cash, and little of pecuniary value, from a UNDMJ administration building. This burglary occurred days after a memo from a UMDNJ staff lawyer asking employees to secure all documents and destroy none of them. The initial story said that the records included documents subpoenaed by the FBI, and personnel records probably also related to the investigation, according to an additional report. The President of UMDNJ, John Petillo, even said that to him "it looks like it may very well have been an inside job." After the burglary, the FBI stepped up their investigation, interviewing several UMDNJ employees in pre-dawn visits.

* The Black Bag... -

Confusion about what documents were actually taken from UMDNJ, another Star-Ledger article included a statement by UMDNJ officials that "no documents requested of UMDNJ by any outstanding subpoena are missing due to the break-in." Yet, according to the Star Ledger, "stolen personnel records could factor into the federal probe."

A Star-Ledger editorial noted, "at least two definitions come to mind when considering the term 'black bag.' First, there's a doctor's medical bag. Then there's the slang meaning a secret, illegal break-in, usually by a government agency. Now, thanks to the latest jaw-dropping incident at New Jersey's University of Medicine and Dentistry, there's no need to make the distinction between the two."


12 posted on 03/10/2006 8:46:35 AM PST by Calpernia (Breederville.com)
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To: Mind-numbed Robot

What a frugal idea!

:)


13 posted on 03/10/2006 8:52:02 AM PST by Calpernia (Breederville.com)
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To: Calpernia

Just trying to save the citizens some money. :-)


14 posted on 03/10/2006 8:54:49 AM PST by Mind-numbed Robot (Not all that needs to be done, needs to be done by the government.)
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To: SheLion

Thanks for the ping!


15 posted on 03/10/2006 11:31:58 AM PST by Alamo-Girl
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To: Calpernia

bump for weekend reading.


16 posted on 03/10/2006 5:31:16 PM PST by floriduh voter (http://www.conservative-spirit.org Tom Gallagher for Fla Guv www.tg2006.com)
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>>>>"The rules of the game in this place have changed, and they haven't been changed by us," he said. "Even though the state is our lifeblood, we cannot, as a matter now of law, engage in some of the kinds of behaviors that have existed in the past. Some of the kinds of things that have (been) reported -- that may have become standard operating procedure in the past -- we cannot do anymore."<<<

At UMDNJ "The Rules of the Game Have Changed"

As auditors continue to investigate the finances of the University of Medicine and Dentistry of New Jersey (UMDNJ), new problems continue to surface.

We have posted extensively at the troubles at UMDNJ, which now is operating under a federal deferred prosecution agreement with the supervision of a federal monitor (most recently here).

The indefatigable reporters at the Newark Star-Ledger have revealed yet another problem, possiblly massive over-billing by UMDNJ of Medicare. " While auditors are still trying to determine the extent of the problem, the amount involved far exceeds the $4.9million in fraudulent billing outlined in a separate federal criminal complaint against UMDNJ in December." " The new billing problems were uncovered last week, as part of an examination of the annual cost reports submitted to the Centers for Medicare & Medicaid Services, according to two officials with direct knowledge of the investigation." "At issue were costs associated with the university's mental health division, University Behavioral HealthCare, and whether UMDNJ-University Hospital padded those costs with its own administrative expenses. If the federal cost reports were inflated, the hospital would be reimbursed at a higher rate than it is legally entitled to receive. The sources said the hospital may have submitted reports that funneled an additional $50million to $70million in unwarranted reimbursements."

Meanwhile, the Dean of one of UMDNJ's two medical schools, Dr Harold Paz, has resigned. His new job will be Senior Vice President for Health Affairs, Dean of the Medical School, and CEO of Hershey Medical Center at Pennsylvania State University. Thus both of UMDNJ's medical schools for the moment will be operating with acting deans.

Furthermore, UMDNJ's new interim president, Bruce C. Vladek, has come on board while putting all his constituents on notice that it will no longer be business as usual at UMDNJ:


People are all on notice that there is no tenure in the management structure of this organization. I feel empowered to restructure the administrative staff of this organization, subject to consultation and approval of the board, however I feel is necessary.
The rules of the game in this place have changed, and they haven't been changed by us. Even though the state is our lifeblood, we cannot, as a matter now of law, engage in some of the kinds of behaviors that have existed in the past. Some of the kinds of things that have (been) reported -- that may have become standard operating procedure in the past -- we cannot do anymore.


It sounds like he has the right idea, but will have a lot of work to do.

But he also noted,

As far as I know, the very, very real problems here are largely isolated from the educational, clinical and research activities of the university.


I do beg to differ somewhat with this. I am sure that UMDNJ has many dedicated professionals and faculty who have been working hard to keep the clinical and academic missions on track. Yet I am not sure how "isolated" they have been from the problems. It must have been demoralizing to work under the previous UMDNJ administration, which has now been revealed as scandal-ridden. I can only hope that their morale is improving now. Hopefully, the new leaders of UMDNJ will be worthy of their trust.

The case of UMDNJ should be a wake-up call for those who thought that business as usual was just a fine way to run the health care system. However, although this case, like that of UCI, has gotten plenty of local attention, it seems not to have been noticed outside of its region, nor in medical, health care, and health policy journals. As far as I can tell, the only place to see these cases juxtaposed is here on Health Care Renewal.

http://hcrenewal.blogspot.com/


17 posted on 03/22/2006 6:52:52 AM PST by Calpernia (Breederville.com)
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http://www.courierpostonline.com/apps/pbcs.dll/article?AID=/20060425/NEWS01/604250372/1006
Judge's findings hit UMDNJ dean

KEY POINTS

The federal monitor concluded R. Michael Gallagher, outgoing dean of UMDNJ's School of Osteopathic Medicine:

Directed subordinates to "doctor' a clinic's financial records so that he could qualify for $15,000 bonuses.

Submitted bills featuring more than $200,000 worth of questionable expenses, including expensive meals and a $750 stay at a New York hotel.




http://www.nj.com/news/ledger/index.ssf?/base/news-6/1145943684186730.xml&coll=1
Layoffs, shifts on horizon for UMDNJ execs

excerpt

The management shake-up comes as UMDNJ is dealing with a new report alleging "unethical and potentially illegal" behavior by a university trustee and a dean. Herbert J. Stern, the federal monitor appointed to oversee UMDNJ, found Newark City Council President Donald Bradley, a university trustee, and R. Michael Gallagher, dean of the School of Osteopathic Medicine in Stratford, both abused their positions.

Neither Bradley nor Gallagher returned phone calls yesterday.

Bradley, one of the top officials in Newark's city government, repeatedly used his position on UMDNJ's board to get friends and family members jobs at the university, according to the report. He also helped get one of his campaign contributors a $1-a-year deal to lease space in a UMDNJ building.

"Based on our interviews and observations, it appears that Bradley used his influence and connections with UMDNJ to further his own political agenda," the report concluded.



http://www.nytimes.com/glogin?URI=http://www.nytimes.com/2006/04/25/nyregion/25medical.html&OQ=_rQ3D1&OP=667dfdd6Q2FQ7BocEQ7B2Q5EQ24yQ3CQ5EQ5EQ5B.Q7B.Q27Q27KQ7BQ27Q2FQ7B.5Q7BJQ60Q3CcmqQ5EJQ7B.5Xc2qQ24WRQ26wQ5BXR
Monitor Sees Misconduct by a State School Dean and a Newark Council Leader
By DAVID KOCIENIEWSKI
Published: April 25, 2006

excerpt

Nearly a million dollars was misspent on country club parties, bonuses and no-show jobs for the officials' friends, a report says.



http://www.northjersey.com/page.php?qstr=eXJpcnk3ZjczN2Y3dnFlZUVFeXk1JmZnYmVsN2Y3dnFlZUVFeXk2OTI0ODMxJnlyaXJ5N2Y3MTdmN3ZxZWVFRXl5Mg==
Med school dean living large

Tuesday, April 25, 2006

By ELISE YOUNG, JOHN P. McALPIN and BOB GROVES
STAFF WRITERS

Dr. R. Michael Gallagher used a curious phrase -- "I have to get my '15' " -- to remind colleagues around the office at the University of Medicine and Dentistry of New Jersey that one of the departments he oversaw needed to do a particularly good job, federal investigators say.

Gallagher, dean of the university's School of Osteopathic Medicine, was referring to a $15,000 bonus he would receive if the UMDNJ Headache Center showed an annual profit, the investigators said in a report released Monday.

In all but one year since 1997, Gallagher authorized transfers of cash from other accounts, even those intended for clinical trials, to make up the difference when it appeared that the Headache Center would fall short, they say. The "profit" consistently was $30,000, the level at which Gallagher was entitled to a bonus.

excerpt



http://www.newsday.com/news/local/wire/newjersey/ny-bc-nj--umdnj0424apr24,0,7271265.story?coll=ny-region-apnewjersey
Federal monitor: Thousands grossly misspent at UMDNJ

excerpt

And school Trustee Donald Bradley, also Newark's City Council president, pressed the medical university to enter a deal to let one of his campaign donors sublet an empty building from UMDNJ for a dollar a year, the report states.

(snip)

the second report into UMDNJ's troubled finances by the federal monitor, former federal Judge Herbert J. Stern, also states he is investigating whether former Gov. James E. McGreevey pulled strings so state Sen. Wayne Bryant, the chairman of the Senate Budget Committee, could "obtain positions" at UMDNJ. For three years, Bryant held a program-support coordinator job the school. In his final year, he made $38,220.

A call placed to Bryant's Cherry Hill law office on Monday was not returned.

But the focus of Stern's latest scathing report centers on Gallagher, the dean of UMDNJ's School of Osteopathic Medicine whose forced resignation goes through this week, and Bradley, who is wrapping up his final months on Newark's council.


18 posted on 04/25/2006 5:40:02 AM PDT by Calpernia (Breederville.com)
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http://hcrenewal.blogspot.com/

More About UMDNJ Leaders Feathering Their Own Nests

Has it really been almost three weeks since we posted about the University of Medicine and Dentistry of New Jersey (UMDNJ)? UMDNJ now is operating under a federal deferred prosecution agreement with the supervision of a federal monitor (see most recent posts here and here.) We had previously discussed allegations that UMDNJ had offered no-bid contracts, at times requiring no work, to the politically connected; had paid for lobbyists and made political contributions, even though UMDNJ is a state institution; and seemed to be run by political bosses rather than health care professionals. (See post here, with links to previous posts.)

There are yet more revelations about how UMDNJ leaders feathered their own nests.

Some concern one New Jersey State Senator Wayne R Bryant (Democrat - Camden County). According to the Philadelphia Inquirer, "in 2003, the college's School of Osteopathic Medicine in Stratford created a program-support coordinator job for Bryant. Investigators are looking into allegations that Bryant improperly used his position as Chairman of the Senate's budget committee to direct millions in state funds to the school." Furthermore, "legislative sources say that as the state budget was finalized last June, Bryant steered a last-minute $2.7 million to the Stratford school for debt service. In addition, Bryant also paved the way to increase a state allocation to UMDNJ's Robert Wood Johnson Medical School in Camden, for a total of $7.8 million, as well as a $5 million appropriation for the Newark campus' Neurosciences Institute...."

Others arise out of more findings by the federal monitor who is now overseeing UMDNJ. According to the indefatigable Newark Star-Ledger, the monitor's latest report has more about Dr R Michael Gallagher, the former Dean of the School of Osteopathic Medicine (mentioned above). "Investigators concluded that the osteopathic school near Camden systematically falsified profit and loss statements - at Gallagher's direction - to show the headache center [which Gallagher ran] was making money, thus making Gallagher, whose salary is $381,854, eligible for the annual bonus." Also, the investigators reported that Gallagher "submitted travel expenses to the university for reimbursement that had already been picked up by drug companies." The report also included a variety of lavish expenses for which Gallagher was reimbursed by UMDNJ, such as an expensive leather computer case for his wife, a night at the Waldorf for Gallagher and his wife, and the now familiar meals at exepnsive restaurants and country clubs.

Also according to the Star-Ledger, the monitor alleged UMDNJ Trustee Donald Bradley, who is also Newark City Council President, pushed UMDNJ to "further his political activities." He persuaded UMDNJ to underwrite a gala affair entitled "Keep the Dream Alive." It cost over $22,000, including $2550 for a martini bar and ice sculptures. "The event apparently violated state policy, which prohibits publicly funded institutions from holding receptions honoring any state employee - which would have included the UMDNJ staffers who were celebrated at the event - or expenses for alcoholic beverages...." Bradly also applied pressure to secure jobs for favored people at UMDNJ. "Bradley would often personally accompany people he recommended for jobs on interviews. Among those were his daughter-in-law, who was hired and subsequently fired." Finally, the monitor questioned "whether Bradley forced UMDNJ to sublet medical office space it leases at 194 Clinton Avenue in Newark to Chandrakant Patel, a physician and contributor to Bradley who operated Universal Industrial Clinic until he lost his medical license." "Top [UMDNJ] administrators were told they should provide physicians and medical imaging equipment to enable Patel to establish a federally qualified health clinic at the site. According to the report, the city council president told one that if she assisted in the effort, he could make 'go away' a separate city lawsuit against UMDNJ...." "UMDNJ has never tried to collect $75,000 in real estate taxes Patel was obligated to pay under the token lease...." The University was never even paid its symbolic lease payment. "It is owed $3 by Patel."

UMDNJ has unfortunately become a prime example of how the leadership can bring a once respected health care organization low by putting their own interests ahead of the institution's mission. At least we can hope that the ongoing clean-up will provide a model for how to clean up other errant health care organizations. Once again, my sympathy is with the dedicated UMDNJ staff who have tried to soldier on through all of this, and of course with the patients who still need to go to UMDNJ for their health care.


19 posted on 04/25/2006 5:42:50 AM PDT by Calpernia (Breederville.com)
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To: SheLion; Gabz; Liz

umdnj updated


20 posted on 04/25/2006 5:47:32 AM PDT by Calpernia (Breederville.com)
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