University of Louisville Physicians Used Medicaid Funds for Personal Bonuses

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Kentucky Senator Tim Shaughnessy said physicians at University of Louisville's medical school used nearly $4.8 million in state Medicaid funds to give themselves bonuses, according to a Courier Journal report.

University of Louisville and its University Hospital and University Physicians Association were involved in the Passport Health Plan settlement in July. Passport is a nonprofit Medicaid managed-care organization that provides healthcare to about 170,000 low-income and disabled Medicaid recipients.

An investigation found the investor-members of the health plan transferred a total of $30.5 million from Passport to their bank accounts because they knew Passport would not be granted a rate increase if this $30.5 million was accounted for on its books.

In its investigation of the transfer of about $10 million from Passport to UPA, the attorney general's office found approximately $4.8 million was used to "compensate" physicians and another $5.2 million was used for an electronic medical records system.

Under the July settlement, UPA will repay the state $9 million over five years. Still, Sen. Shaughnessy said the repayment doesn't address his concern that U of L's board wasn't involved in major financial transactions involving groups with which it is affiliated.

Related Articles on University of Louisville, UPA and University Hospital:

4 Kentucky Providers Will Repay $26.4M to Passport Health Plan as Part of Settlement
University Hospital Can Exit Kentucky Merger for Undetermined Price
Organizations Request Kentucky AG Reevaluate Public Status of University Hospital

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