Federal officials are investigating instances of alleged billing fraud within the University of New Mexico Health Sciences Center.
UNM submitted a self-report to the Department of Justice May 16, 2002, addressing the matter.
"We are being cooperative and providing any information that is requested," said Sam Giammo, director of Public Affairs at the Health Sciences Center.
He added that the University has taken the appropriate steps in dealing with personnel matters, but because the investigation is ongoing, he could not comment on any specifics.
"Nothing is complete until all documents are signed off by everybody involved," Giammo said. "We don't have that."
A government employee who is familiar with the investigation said that one major concern of the investigation was that William L. Johnson, former medical director of the Pain Management Clinic at the center, was billing patients for services that were never rendered.
Rather than treating patients in his office, Johnson often scheduled appointments, filled out paperwork and billed the patients without seeing them, the government employee alleged.
The employee also stated that a former unit clerk at the Pain Management Clinic aided Johnson in the unlawful billing and falsified prescriptions.
In April 2001, a former registered nurse at the clinic reported concerns about Johnson's conduct to the nursing supervisor, but no action was taken at that time, the government employee alleged.
The employee added that in October 2001, the Health Sciences Center Risk Management Office was advised of the possible billing infractions. Shannan Carter, general counsel for the health center at the time, was assigned to conduct the internal investigation.
Citing personal reasons, Johnson drafted a letter of resignation in January 2002, the government employee alleged. Despite health center regulations stating that an employee must give four months' notice before leaving, Johnson officially left the hospital Feb. 28, 2002, according to University employment records.
The employee stated that Johnson was paid for through the date of his resignation per a settlement with the University, with both sides agreeing not to disclose the terms of the settlement, notwithstanding legal obligations.
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According to the New Mexico Medical Examiners Board, neither Johnson or the Pain Management unit clerk has had any action taken against them to date. The unit clerk tendered her resignation at the health center in November 2002.
The government employee added that in April 2002, a health sciences doctor wrote an internal letter addressing concerns of possible retaliation against those who reported the billing improprieties.
Despite repeated inquiries from the Daily Lobo, the author of the internal letter refused to comment on the matter.
The employee stated that, in April 2002, Nick Estes, of University Counsel, took control of the preliminary internal investigation from Carter.
Following the internal investigation, the University reported the matter to the Department of Justice.
"We are handling this properly," Giammo said. "We're probably pretty close to being finished."
In October 2002, the Office of the Inspector General, an agency within the U.S. Department of Justice, conducted interviews with those involved in the matter, the government employee stated.
