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General News    H3'ed 5/4/11  

Major University Hires a President With Ties to Medicare Fraud

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Roger Shuler
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2002--Capilouto is named UAB's provost, the chief academic officer.

2004--Meythaler files his whistleblower complaint and resigns from UAB.

2005--The U.S. Justice Department consolidates the two claims and settles the case with UAB.

2011--Capilouto is named president of the University of Kentucky.

Research fraud at UAB took several forms, and Gober's complaint provides devastating details. (See the full complaint at the end of this post.)

Improper effort reporting--Effort reporting is supplied in a grant application to inform the government of the applicant's time and effort available for a grant or research program. Gober states that UAB failed to disclose overlap support "on hundreds and perhaps thousands" of grant applications. Such false claims resulted in UAB receiving approximately $72 million in federal funding--in 2000 alone.

Double billing and improper billing--Gober states that UAB routinely submitted claims to federal health-care programs that should have been billed to non-federal entities. In some cases, UAB already had received compensation from non-federal entities but billed the federal government anyway. In other cases, UAB already had received compensation from one federal entity but billed another federal entity anyway. Hence, the term "double billing."

How insidious was the deception on the part of UAB officials? From the Gober complaint:

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I live in Birmingham, Alabama, and work in higher education. I became interested in justice-related issues after experiencing gross judicial corruption in Alabama state courts. This corruption has a strong political component. The corrupt judges are (more...)
 
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