Problems at UMDNJ not likely a surprise to leaders
The problems at the University of Medicine and Dentistry of New Jersey (UMDNJ) in Newark probably were known to insiders long before they became public, says Diane Swanson, associate professor of management at Kansas State University in Manhattan and an expert in business ethics and compliance. With ethical lapses and fraud, there usually are early warning signs that provide the opportunity to act, she notes.
"None of this should have just blown up at the last minute and surprised everyone. If these warnings are attended to early on, you can save a lot of time, money, and grief," Swanson says. "When there is a wide-ranging problem like this in an institution, that usually is the lesson that people learn."
Most business scandals follow the same pattern, Swanson explains. At first there are internal warnings and signs that those in key leadership positions should recognize. Then they have the opportunity to act. If they don't, the next stage usually involves media coverage and whistle-blowing. Then the next stage is litigation and government intervention.
"At that point, you can see that it didn't have to go that far if good people in power had attended to the initial signals," she says.
UMDNJ troubles include kickback and fraud charges
The long list of allegations against the University of Medicine and Dentistry of New Jersey (UMDNJ) in Newark began in 2006 with a report that UMDNJ paid $83,700 to chauffeur the director of the volunteer advisory board from her home in Pennsylvania's Poconos to the Newark campus in a hired car, according to media reports and information posted on the school's web site by the federal monitor.
Then two more scandals surfaced, including disclosure of a system in which job applicants were formally graded based on their political connections and a secret political slush fund used to get favors with the powerful and elite.
The situation worsened significantly when a cardiology kickback scheme came to light. Local cardiologists were given high-paid, no-show jobs and in return, they would funnel their patients into a heart surgery program the state had placed on probation.
UMDNJ spokeswoman Anna Farneski says two people have been placed on paid administrative leave pending the outcome of the investigations: Ronald Pittore, JD, managing director of the UMDNJ legal department, and Jerrold Ellner, MD, professor of clinical medicine. Ellner also resigned his position as chairman of the Department of Medicine, Farneski says.
On Nov. 15, 2006, interim UMDNJ president Bruce C. Vladeck, MD, sent a memo to dean Robert Johnson directing him to immediately implement a new reporting and data collection system to track how often employees come to work and how many hours per week they are putting in. "This is the first step, and certainly not the last, in a review process to ensure that all physician compensation and employment relationships at UMDNJ are fully in compliance with all applicable laws and regulations," Vladeck wrote.
In addition, Farneski says the salaries of nine cardiologists were reduced and two were terminated as a result of the cardiology scandal.
Farneski acknowledges that "the compliance program was inadequate, and the Board of the Trustees has undertaken a complete overhaul and restructuring of the department to ensure UMDNJ meets all federal and state laws and regulations."
UMDNJ enacts new policy to protect whistle-blowers
The Board of Trustees of the University of Medicine and Dentistry of New Jersey (UMDNJ) in Newark recently unanimously approved a sweeping new universitywide policy for faculty, staff, and students to report suspected ethical and legal concerns — and to protect those whistle-blowers from any form of retaliation.
The board's action has the effect of codifying and expanding the existing guidelines for accepting complaints and protecting whistle-blowers, which are being enforced by the UMDNJ Office of Ethics and Compliance, explains UMDNJ board chairman Robert Del Tuf.
"As we move the university forward, it is imperative that we create an atmosphere that fosters ethics and professionalism," Del Tuf says. "We need a coherent policy that encourages employees to come forward with information and protects them from adverse reaction."
The policy reinforces the obligation of every UMDNJ staff member, student and administrator to engage in lawful behavior and, if suspicious of possible misconduct, to report that behavior to an appropriate authority. The policy says that a good-faith suspicion of misconduct is sufficient, and that no disciplinary action may be taken against an employee who honestly makes an allegation of misconduct — even if a subsequent investigation of the whistle-blower's charge finds no misconduct.
Six chains of command
The policy also spells out how and where such reports may be made. Such reports may be taken anonymously; also, if the whistle-blower discloses his or her name, it must be kept confidential to the extent possible under law.
Any one of these six chains of command may serve as an "appropriate authority" to take such a report, depending upon what the individual believes is the proper forum:
- an employee's immediate supervisor;
- the UMDNJ Office of Human Resources;
- the UMDNJ Office of Affirmative Action and Equal Employment Opportunity;
- the UMDNJ Ethics and Compliance Office, including complaints taken on the office's existing telephone line and existing web site (www.umdnj.edu/complweb/forms/forms_06reporting.htm);
- the Audit Committee of the UMDNJ Board of Trustees;
- the federal monitor for UMDNJ, Herbert Stern; and/or the Office of the U.S. Attorney for the District of New Jersey, Christopher Christie, as appropriate.
Also, if a whistle-blower suspects retaliation or harassment as a result of a report of possible misconduct, they may turn to the UMDNJ Office of Ethics and Compliance, a designated compliance officer at his or her school, or the audit committee of the UMDNJ board of trustees to request an investigation. A new disciplinary review committee will meet weekly to ensure that requests by supervisors for disciplinary actions against staff, including termination, are being made for cause and not in retaliation against a whistle-blower. A new database is being developed to allow for tracking of complaints and diagnostic reviews. Additionally, the policy calls for mandatory ethics education and training.
The problems at the University of Medicine and Dentistry of New Jersey (UMDNJ) in Newark probably were known to insiders long before they became public.You have reached your article limit for the month. Subscribe now to access this article plus other member-only content.
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