Today Governor Codey, the University’s Board of Trustees, the U.S. Attorney and I have finalized the specific terms of having a federal monitor placed at the University. Former Federal Prosecutor Herbert Stern has been appointed by the U.S. Attorney to oversee UMDNJ’s financial operations for a period of two years, plus an optional extension of one year.

The full text of both the Deferred Prosecution Agreement and the Monitor Agreement is available for viewing through the links attached to this message or directly through the UMDNJ website.

With regard to Judge Stern’s engagement as Independent Monitor, many of you may ask how his presence will impact your role at the institution. The terms of the agreement clearly state that the Monitor shall have no role in academic affairs. In short, students will continue to be guided by our expert faculty as they prepare for careers in the health sciences, faculty will continue to teach and advance the cause of science through their research, and caregivers will still dispense care to those most in need with compassion and skill.

Judge Stern will, however, have access to any and all documents he deems pertinent and necessary for his engagement. He will review past and current contracts across all campuses, particularly those approved under the waiver process. The Judge will similarly review billing practices for our health care delivery enterprises, particularly with regard to the Medicare and Medicaid programs. He will also lead the institution in its recruitment efforts of certain key legal and compliance positions.

As previously stated, I view the presence of this external reviewer as a positive way to effect the changes I have proposed for this university. I announced a series of reforms in May, all of which have been implemented. The involvement of an outside monitor may allow for a more rapid implementation of many of my other reforms.

As has been reported in the media, several personnel actions have already occurred. We do not know if more will be necessary, but any current or past UMDNJ employee involved with wrongdoing will be held accountable for their actions.

I anticipate and expect continued full cooperation with Judge Stern’s efforts from each of you. Please stay the course and join with us as we work to better this institution as we serve our students and all residents of New Jersey.

John J. Petillo, PhD
President

Above: U.S. Attorney Christopher Christie (left) with Governor Richard Codey and President John Petillo.