A nonprofit arm of the State University of New York system has agreed to pay $3.75-million to settle charges that it doctored audits of the state's Medicaid program, The Post-Standard of Syracuse and the Rochester Democrat & Chronicle report. Federal prosecutors said the SUNY Research Foundation, which the state contracted in 2007-8 to review data on Medicaid recipients, falsified findings to hide the number of ineligible people getting benefits and protect the state's $22-billion in Medicaid funds.
In the settlement, the foundation acknowledged submitting false statements to federal officials and said it has improved its compliance standards. About a fifth of the payment will go to five former employees who blew the whistle on the false claims. The foundation has been the focus of New York state investigations in recent years over alleged spending abuses and nepotism.