- Associated Press - Monday, December 15, 2014

ALBANY, N.Y. (AP) - Federal prosecutors say the Research Foundation for the State University of New York has agreed to pay $3.75 million to resolve allegations that its Center for Development of Human Services manipulated audits of health care programs in 2007-2008.

Authorities say the nonprofit foundation contracted with the state Health Department to review and report to the federal government on patients’ eligibility for government-funded Medicaid and Children’s Health Insurance Programs.

The settlement resolves allegations that the audits were manipulated by prescreening and altering the cases selected in what were supposed to be random samplings.

Authorities say the foundation has enhanced compliance measures, and that the investigation was triggered by a whistleblower lawsuit.

The foundation says that under new leadership it has improved controls and established a new compliance program, and this settlement concludes a five-year investigation.

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