The University of Medicine and Dentistry of New Jersey was warned by its lawyer in 2001 that it had been double billing Medicaid since the mid-1990’s. The university billed the health insurance program for its doctors’ services to patients and the doctors billed Medicaid for the same services.
The double billing continued for more than three years after the warning.
Federal prosecutors and state insurance regulators are currently examining the university’s billing practices. They are also investigating reports that university officials awarded politically connected contractors tens of millions of dollars’ worth of jobs, campaign contributions, no-bid contracts and no-strings-attached grants.
The New York Times (subscription required) ran an article on this story in its July 6, 2005 issue.