UAB Reaches Settlement on Research Probe

The University of Alabama at Birmingham has reached agreement with the United States to resolve an investigation of research grants and Medicare billing between 1996 and 2004 at UAB, the UAB Health System and the Health Services Foundation (UAB’s faculty practice plan). UAB President Carol Garrison described the settlement as a “very positive outcome.”

April 14, 2005 

BIRMINGHAM, AL — The University of Alabama at Birmingham has reached agreement with the United States to resolve an investigation of research grants and Medicare billing between 1996 and 2004 at UAB, the UAB Health System and the Health Services Foundation (UAB’s faculty practice plan). UAB President Carol Garrison described the settlement as a “very positive outcome.”

In satisfaction of all federal claims, the United States will receive a reimbursement of $3,390,000, which is less than one-tenth of one percent of the more than $3.5 billion the government paid UAB during this period for research funding and healthcare services.

The settlement also resolves lawsuits filed against UAB by two former employees. The plaintiffs in those actions will receive a combined payment of $500,000 as reimbursement for their attorneys’ fees and in exchange for full releases of UAB, the Health System and the HSF.

UAB cooperated fully with the government investigation and discovered and reported the errors that resulted in the reimbursement. There was no finding or admission of wrongdoing by UAB or any university personnel.

The federal review focused on allegations involving research compliance and billing, including the manner in which UAB investigators accounted for their overall effort and research support; charging practices for grant-related services, the funding relationships between UAB Hospital, the School of Medicine and HSF; and billing practices for services provided to patients participating in clinical studies. The investigation and lawsuits did not question the quality of healthcare services or research provided by UAB or the HSF.

“As a leading recipient of NIH grant funding, UAB takes its compliance responsibilities very seriously. Research and billing compliance are top priorities and UAB’s compliance officers are charged with identifying errant practices and promptly correcting and reimbursing the government for any resulting charges,” Garrison said. “The federal government has entrusted UAB with critical research responsibilities on the frontiers of scientific knowledge and has made substantial investments that enable us to provide vital healthcare services to the citizens of Alabama. In return, we are dedicated to fulfilling our mission in a manner deserving of that trust and in accordance with the highest compliance standards.”

During the investigation, the government reviewed UAB’s past and current research and billing compliance programs. The government’s recognition of the quality and integrity of the program is reflected in the settlement, where UAB has committed to maintain its hospital compliance program at or above its current staffing and funding levels.