New Jersey Hospital Agrees to Pay $2M in Medicaid Fraud Settlement

The University of Medicine and Dentistry of New Jersey has agreed to pay $2 million to settle federal civil fraud allegations that its hospital defrauded Medicaid, according to a news release from the U.S. Department of Justice.

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UMDNJ’s University Hospital submitted claims to Medicaid for outpatient physician services that were also being billed by doctors working in the hospital’s outpatient centers, effectively doubling Medicaid payments, according to the release.

The case against UMDNJ originated from a whistleblower complaint filed under the Federal False Claims Act, which resulted in a criminal complaint filed against UMDNJ by the U.S. Attorney’s Office for the District of New Jersey. UMDNJ entered into a deferred prosecution agreement for the criminal complaint and paid $4.9 million.

Read the DOJ release on the UMDNJ Medicare fraud settlement (note: this link is no longer available on the DOJ’s website).

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