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Unwarranted Variation and Supply Driven Health Care

Editor’s note: While UMDMJ denies that this is an admission of guilt, this type of behavior supports the years of research of the Dartmouth Atlas regarding unwarranted variation and supply driven health care.

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The University of Medicine and Dentistry of New Jersey entered an $8.3 million settlement with the U.S. Justice Department resolving allegations that the institution paid cardiologists kickbacks in order boost the volume of catheterizations and cardiothoracic surgeries at its 444-bed University Hospital.

Settlements do not constitute admissions of wrongdoing or liability. “This settlement agreement marks the conclusion of a matter involving misconduct at UMDNJ that arose years ago in a much different culture,” according to an e-mailed statement from UMDNJ spokesman Jeffrey R. Tolvin. “We are demonstrating to our many internal and external constituencies that UMDNJ has been transformed.”

According to a Justice Department news release, declining numbers of the cardiac procedures in 1995 threatened the hospital’s Level 1 trauma-center funding and accreditation, and to solve the problem, community cardiologists were hired through part-time contracts that the government alleges amounted to conduits for kickbacks for referrals.

http://www.modernhealthcare.com/apps/pbcs.dll/article?AID=/20090930/REG/309309942/-1

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October 4, 2009 - Posted by | Federal Government, healthcare, Overuse | , ,

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