The University of Medicine and Dentistry of New Jersey has agreed to pay the federal government $2 million to resolve allegations it defrauded Medicaid.

The U.S. Justice Department announced the settlement yesterday.

UMDNJ's University Hospital was accused of submitting claims to Medicaid between 1993 and 2004 for outpatient physician services that also were being billed by doctors working for UMDNJ, effectively double-billing Medicaid.

UMDNJ already has paid the state of New Jersey $4.9 million stemming from a criminal complaint about the double billing. Half of that money was returned to the federal Medicaid program. Under the settlement announced yesterday, UMDNJ will pay an additional $2 million. - AP