$8.3 Million Settlement between University of Medicine and Dentistry of New Jersey Alleging Stark and Anti-Kickback Violations

Alleging False Claims Act, Stark Law, and Anti-Kickback violations, the University of Medicine and Dentistry of New Jersey (UMDNJ) settled with the Department of Justice (DOJ) and the Department of Health and Human Services (HHS) for $8.3 million–double what Medicare paid for the allegedly improper referrals. UMDNJ is licensed as a Level I Trauma Center. For UMDNJ to maintain its Level I license, it is required to meet a threshold of cardiac procedures it performs. According to the government, because UMDNJ fell below this threshold in 1995, it entered into agreements with cardiologists that involved inducing those cardiologists to refer their cardiac procedures to UMDNJ. Additionally, the DOJ settled with nine other cardiologists involved in the alleged scheme, two of who plead guilty to criminal embezzlement charges.

Chairman of the UMDNJ Board of Trustees describes the settlement as a “significant next step” in UMDNJ’s evolution toward operating “under the highest ethical standards.”

The Department of Justice issued a Press Release regarding this settlement.

For more information on Stark and Anti-Kickback, please contact Adrienne Dresevic, Esq. or Carey F. Kalmowitz, Esq. at (248) 996-8510, visit the HLP Stark and Anti-Kickback specialty page, or the HLP website.