New Jersey Hopsital to Pay $8.3 Million for Illegal Kickbacks

The University of Medicine and Dentistry of New Jersey (UMDNJ) has agreed to pay the government $8.3 Million to settle allegations that it illegally paid kickbacks to cardiologists and caused the submission of false claims to Medicare, according to a press release from the United States Department of Justice.   The Government alleged that UMDNJ illegally paid community cardiologists to refer patients to UMDNJ, and that these kickbacks were disguised through part-time employment contracts -for work the cardiologists never performed.

Violations of the federal Anti-Kickback Statute, 42 U.S.C. Section 1320a-7b(b), have served as the basis for many whistleblower (or “Qui Tam”)  cases under the federal False Claims Act.  The Anti-Kickback Statute, and a number of similar State laws, generally prohibit anyone from offering, paying, soliciting or receiving any remuneration to induce (or reward) a referral of a person for services or items paid for by Medicare, Medicaid, another federal healthcare program.  These improper payments can come in many different forms, including, but not limited to: referral fees; finder’s fees; productivity bonuses; discounted leases; discounted equipment rentals; research grants; speaker’s fees; excessive compensation; and free or discounted travel or entertainment.

The Press Release from the Department of Justice can be viewed at http://www.usdoj.gov/usao/nj/press/press/files/pdffiles/umdnj0930%20rel.pdf