University of Medicine and Dentistry of New Jersey - Controversy and Scandals

Controversy and Scandals

UMDNJ has been involved in a series of blunders that include Medicaid over-billings. The criminal complaint filed against the institution charges that health care fraud occurred through alleged double-billing of Medicaid between May 2001 and November 2004 for physician services in outpatient clinics. A deferred prosecution agreement was filed in federal court in Newark, N.J., Dec. 29, 2005 to avoid prosecution. Herbert Jay Stern, a former U.S. Attorney and federal judge in New Jersey, was appointed as a federal monitor to oversee and enforce compliance in accordance with the deferred prosecution agreement that outlines reform and action to help resolve illegal practices and restore financial integrity and professionalism to the institution. In March 2008, UMDNJ announced that its accreditation by the Middle States Commission on Higher Education had been restored, following the termination of the Deferred Prosecution Agreement; Stern had recommended the return of full responsibility for governance of the institution to the UMDNJ Board of Trustees after implementation of a number of systemic reforms by the Board and administration.

In Stratford, New Jersey, at the UMDNJ School of Osteopathic Medicine, Warren Wallace, the prior Senior Associate Dean for Academic and Student Affairs, was terminated amid accusations of unethical behavior. Accusations include inappropriate use of UMDNJ time and resources for political activities, efforts to obtain no-bid contracts for a friend or neighbor, and inappropriate actions in relation to obtaining admission to the School of Osteopathic Medicine for his daughter.

UMDNJ had placed the New Jersey Senator Wayne Bryant on a "no-show" job to increase funding for the school, Bryant being the chairman of the Senate Budget and Appropriations Committee and the Legislature's Joint Budget Oversight Committee. Bryant stepped down from this position in February 2007. The case was investigated by former United States Attorney (later New Jersey governor) Christopher Christie. Bryant was found guilty of the charges on November 19, 2008, and received a four-year sentence in federal prison. R. Michael Gallagher, former dean of UMDNJ, was convicted of bribing Bryant and received an 18-month sentence.