News in brief - Feb. 28, 2000

University of Chicago settles fraud charges - Harvard reviews its rules for researchers

University of Chicago settles fraud charges

Chicago -- The University of Chicago has agreed to pay the government $10.9 million to settle charges that its hospitals, faculty physician group and the university systematically upcoded Medicare and Medicaid claims for outpatient services.

The charges stem from a 1996 whistle-blower lawsuit alleging that the institutions consistently had exaggerated the complexity of care for Medicare and Medicaid patients. Al Reppine, RN, alleged that it was done in part by using forms that gave doctors the option of selecting only the two highest billing codes. The university, which admitted no wrongdoing, said such forms were used "for a short period of time in a limited area." Reppine will get $1.8 million for his role in the case.

Harvard reviews its rules for researchers

Cambridge, Mass. -- Harvard Medical School officials have drafted new guidelines that would relax their conflict-of-interest rules for researchers. Until they are accepted, however, further details are not being released.

The current guidelines, in place for 10 years, are considered to be among the strictest in the country. Faculty members may hold up to only $20,000 of a company's stock for which they do research. They are also prohibited from devoting more than 20% of their time to work outside of Harvard.

"Molecular biology is moving bench results much closer to the product end and bringing industry and academia closer together," said Harvard Medical School spokesman Don Gibbons. But another concern is maintaining competition for top-notch scientists. "There is some question about [whether] our guidelines are so strict that we are having problems with faculty recruitment and retention," he said.