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The osteopathic community has been strangely quiet about the troubles at UMDNJ-SOM. I think that when these obivious and egregious ethical problems arise, the profession has a responsibility to be reflective about what kind of message the actions of its leadership send to students. All medical students are expected to hold increasingly higher standards of professionalism as evidenced by white coat ceremonies, ACGME-competencies, culturally sensitive medicine, etc. To what standards should students hold their leaders accountable?
"You find that all men are successes or failures. Success is the stamp of truth. I will say all men who fail to place their feet on the dome of facts do so by not sieving all truth and throwing the faulty to one side."
Andrew Taylor Still
Med school dean living large
Tuesday, April 25, 2006
By ELISE YOUNG, JOHN P. McALPIN and BOB GROVES
STAFF WRITERS
JAMES W. ANNESS / THE RECORD
Professor Emanuel Goldman asking a question Monday of interim UMDNJ President Bruce Vladeck at a meeting in Newark after a federal monitor issued a report citing spending irregularities at the school.
Dr. R. Michael Gallagher used a curious phrase -- "I have to get my '15' " -- to remind colleagues around the office at the University of Medicine and Dentistry of New Jersey that one of the departments he oversaw needed to do a particularly good job, federal investigators say.
Gallagher, dean of the university's School of Osteopathic Medicine, was referring to a $15,000 bonus he would receive if the UMDNJ Headache Center showed an annual profit, the investigators said in a report released Monday.
In all but one year since 1997, Gallagher authorized transfers of cash from other accounts, even those intended for clinical trials, to make up the difference when it appeared that the Headache Center would fall short, they say. The "profit" consistently was $30,000, the level at which Gallagher was entitled to a bonus.
The 36-page report, released by the federally appointed monitor reviewing UMDNJ operations, alleges that Gallagher and Newark City Council President Donald Bradley, a medical school trustee, engaged in "unethical and ... potentially illegal activities" at the expense of the state's largest medical school.
Gallagher, who was forced to resign last month by interim President Bruce C. Vladeck, did not return a phone call for comment. Bradley did not return a phone message left at his Newark office.
But both men had submitted to interviews for the report. At no time did they admit wrongdoing. At one point, Gallagher said he was operating legitimately.
Bradley sought to distance himself from what investigators say was hands-on oversight of a Black History Month celebration that allegedly turned into a political fund-raiser.
Investigators for the monitor, former federal Judge Herbert J. Stern, say they have concluded their review of Gallagher and Bradley. It remains an option for U.S. Attorney Christopher Christie or other prosecutors to pursue criminal charges. Christie spokesman Michael Drewniak declined to comment on any of the monitor's findings.
The report alleges:
Gallagher manipulated accounts and petty cash funds to cover at least $202,000 in gifts, meals and entertainment. For alcohol alone during a five-year period, he was reimbursed $3,250 -- and at least $275 of that was for glasses of 18- or 21-year old Glenlivet scotch at $18 to $25 per serving. And at a time when the school was laying off employees to reduce expenses, Gallagher continued to entertain colleagues at a South Jersey country club and upscale Philadelphia restaurants.
Gallagher used a car and a chauffeur paid for by the university -- a violation of school rules -- and late last year submitted a purchase order for a second university-owned car. The driver's duties included taking Gallagher's wife to appointments with doctors and hairstylists.
Bradley was instrumental in leasing a university-owned property on Clinton Avenue in Newark, "at virtually no cost" to an individual identified as C. Patel, a onetime physician who had lost his medical license. "This amounts to the improper gifting of public funds," the report says. "Conflicts of interest abound in this situation." The report refers to the relationship between Patel and Bradley as "the mystery of 194 Clinton Ave."
In 2005, Bradley organized a Black History Month celebration involving the university and the city of Newark and, ultimately, "significant sums of public funds were used to entertain politicians." Further, Bradley became a familiar figure in the school's Human Resources Office, where he "strongly encouraged [staffers] to hire the candidates he accompanied."
Stern, the monitor, was appointed by Christie last year as part of an agreement to avoid a criminal prosecution of the school.
The investigation so far suggests the university, with campuses in Newark and South Jersey, distributed hundreds of millions of dollars in no-bid contracts, provided jobs to the politically well-connected and wrongly billed the government nearly $5 million for charity health services.
The report released Monday was redacted, or edited, because the inquiry continues.
It pointed out that the staffs of UMDNJ and University Hospital, "but for these very rare exceptions, are ethical, hardworking and committed." It said employees are "deserving of the public's trust and financial support" and "the institution has been making great strides in restoring itself."
Further layoffs
Vladeck, in a meeting with 275 faculty, staff and students Monday in Newark, thanked employees for persevering. But he acknowledged that more changes are ahead, with some "reshuffling" of the administration and possible layoffs.
"A number of changes are planned, reassignments, redefinitions of duties," he said. "But I'm expecting nobody in central administration to leave in the near future."
Stern's document was the result of interviews with more than 70 people and reviews of petty-cash receipts, bank account activity, political donations, lease agreements and contracts. It was the first of what will be quarterly reports submitted to Christie.
Gallagher is scheduled to leave the school's Stratford campus by the end of April. Another official who resigned at the same time, Robert Saporito, the senior vice president of academic affairs, was not named in Monday's report.
Governor Corzine forced the resignation of the school's president, John Petillo, in January. Two other high-ranking administrators resigned last year.
The report suggested that more individuals will come under the same scrutiny.
"Our investigation confirmed that Dr. Gallagher inappropriately exerted influence over ... financial officers who reported to him," it said. "Moreover, Dean Gallagher took advantage of lax oversight and financial controls to expend large sums."
In the meantime, some UMDNJ faculty and staff may be forced to leave for budgetary reasons. Vladeck told the audience that he expects layoffs of some middle managers.
"I'm hopeful, but I'm not confident that that will be it," he said. "We have real budget problems."
Asked about his tenure as interim president, Vladeck said he had a contract with the university board that "defines my role as six to 12 months." He might stay on if asked, he said.
"In the long term, a great research university needs a principal executive who is a great clinician or a great researcher," he said, adding that he was neither.
E-mail: [email protected], [email protected], [email protected]
* * *
FAST FACTS
A federal monitor's report released on Monday details allegations of fiscal improprieties by Michael Gallagher, former dean of the UMDNJ School of Osteopathic Medicine.
Spending $3,250 on alcohol, $275 on personal favorite Glenlivet scotch.
Falsifying balance sheets so Gallagher could earn a $15,000 bonus.
Paying out $180,065.73 to restaurants and catering halls, including his country club.
Arranging a $1.5 million lease on a property owned by a political contributor.
Organizing a $22,000 political event paid for by UMDNJ
"You find that all men are successes or failures. Success is the stamp of truth. I will say all men who fail to place their feet on the dome of facts do so by not sieving all truth and throwing the faulty to one side."
Andrew Taylor Still
Med school dean living large
Tuesday, April 25, 2006
By ELISE YOUNG, JOHN P. McALPIN and BOB GROVES
STAFF WRITERS
JAMES W. ANNESS / THE RECORD
Professor Emanuel Goldman asking a question Monday of interim UMDNJ President Bruce Vladeck at a meeting in Newark after a federal monitor issued a report citing spending irregularities at the school.
Dr. R. Michael Gallagher used a curious phrase -- "I have to get my '15' " -- to remind colleagues around the office at the University of Medicine and Dentistry of New Jersey that one of the departments he oversaw needed to do a particularly good job, federal investigators say.
Gallagher, dean of the university's School of Osteopathic Medicine, was referring to a $15,000 bonus he would receive if the UMDNJ Headache Center showed an annual profit, the investigators said in a report released Monday.
In all but one year since 1997, Gallagher authorized transfers of cash from other accounts, even those intended for clinical trials, to make up the difference when it appeared that the Headache Center would fall short, they say. The "profit" consistently was $30,000, the level at which Gallagher was entitled to a bonus.
The 36-page report, released by the federally appointed monitor reviewing UMDNJ operations, alleges that Gallagher and Newark City Council President Donald Bradley, a medical school trustee, engaged in "unethical and ... potentially illegal activities" at the expense of the state's largest medical school.
Gallagher, who was forced to resign last month by interim President Bruce C. Vladeck, did not return a phone call for comment. Bradley did not return a phone message left at his Newark office.
But both men had submitted to interviews for the report. At no time did they admit wrongdoing. At one point, Gallagher said he was operating legitimately.
Bradley sought to distance himself from what investigators say was hands-on oversight of a Black History Month celebration that allegedly turned into a political fund-raiser.
Investigators for the monitor, former federal Judge Herbert J. Stern, say they have concluded their review of Gallagher and Bradley. It remains an option for U.S. Attorney Christopher Christie or other prosecutors to pursue criminal charges. Christie spokesman Michael Drewniak declined to comment on any of the monitor's findings.
The report alleges:
Gallagher manipulated accounts and petty cash funds to cover at least $202,000 in gifts, meals and entertainment. For alcohol alone during a five-year period, he was reimbursed $3,250 -- and at least $275 of that was for glasses of 18- or 21-year old Glenlivet scotch at $18 to $25 per serving. And at a time when the school was laying off employees to reduce expenses, Gallagher continued to entertain colleagues at a South Jersey country club and upscale Philadelphia restaurants.
Gallagher used a car and a chauffeur paid for by the university -- a violation of school rules -- and late last year submitted a purchase order for a second university-owned car. The driver's duties included taking Gallagher's wife to appointments with doctors and hairstylists.
Bradley was instrumental in leasing a university-owned property on Clinton Avenue in Newark, "at virtually no cost" to an individual identified as C. Patel, a onetime physician who had lost his medical license. "This amounts to the improper gifting of public funds," the report says. "Conflicts of interest abound in this situation." The report refers to the relationship between Patel and Bradley as "the mystery of 194 Clinton Ave."
In 2005, Bradley organized a Black History Month celebration involving the university and the city of Newark and, ultimately, "significant sums of public funds were used to entertain politicians." Further, Bradley became a familiar figure in the school's Human Resources Office, where he "strongly encouraged [staffers] to hire the candidates he accompanied."
Stern, the monitor, was appointed by Christie last year as part of an agreement to avoid a criminal prosecution of the school.
The investigation so far suggests the university, with campuses in Newark and South Jersey, distributed hundreds of millions of dollars in no-bid contracts, provided jobs to the politically well-connected and wrongly billed the government nearly $5 million for charity health services.
The report released Monday was redacted, or edited, because the inquiry continues.
It pointed out that the staffs of UMDNJ and University Hospital, "but for these very rare exceptions, are ethical, hardworking and committed." It said employees are "deserving of the public's trust and financial support" and "the institution has been making great strides in restoring itself."
Further layoffs
Vladeck, in a meeting with 275 faculty, staff and students Monday in Newark, thanked employees for persevering. But he acknowledged that more changes are ahead, with some "reshuffling" of the administration and possible layoffs.
"A number of changes are planned, reassignments, redefinitions of duties," he said. "But I'm expecting nobody in central administration to leave in the near future."
Stern's document was the result of interviews with more than 70 people and reviews of petty-cash receipts, bank account activity, political donations, lease agreements and contracts. It was the first of what will be quarterly reports submitted to Christie.
Gallagher is scheduled to leave the school's Stratford campus by the end of April. Another official who resigned at the same time, Robert Saporito, the senior vice president of academic affairs, was not named in Monday's report.
Governor Corzine forced the resignation of the school's president, John Petillo, in January. Two other high-ranking administrators resigned last year.
The report suggested that more individuals will come under the same scrutiny.
"Our investigation confirmed that Dr. Gallagher inappropriately exerted influence over ... financial officers who reported to him," it said. "Moreover, Dean Gallagher took advantage of lax oversight and financial controls to expend large sums."
In the meantime, some UMDNJ faculty and staff may be forced to leave for budgetary reasons. Vladeck told the audience that he expects layoffs of some middle managers.
"I'm hopeful, but I'm not confident that that will be it," he said. "We have real budget problems."
Asked about his tenure as interim president, Vladeck said he had a contract with the university board that "defines my role as six to 12 months." He might stay on if asked, he said.
"In the long term, a great research university needs a principal executive who is a great clinician or a great researcher," he said, adding that he was neither.
E-mail: [email protected], [email protected], [email protected]
* * *
FAST FACTS
A federal monitor's report released on Monday details allegations of fiscal improprieties by Michael Gallagher, former dean of the UMDNJ School of Osteopathic Medicine.
Spending $3,250 on alcohol, $275 on personal favorite Glenlivet scotch.
Falsifying balance sheets so Gallagher could earn a $15,000 bonus.
Paying out $180,065.73 to restaurants and catering halls, including his country club.
Arranging a $1.5 million lease on a property owned by a political contributor.
Organizing a $22,000 political event paid for by UMDNJ
