by James A. Bacon
As the investigation into alleged management abuses at the University of Virginia Health System and School of Medicine gathers momentum, several physicians have detailed their allegations to The Daily Progress. Perhaps the most damning charge is that senior Medical Center executives pressured physicians into “upcoding” procedures to overcharge patients and their insurers.
Upcoding is fraud. Sadly, the practice is widespread in the healthcare industry. Whether it occurred at UVA remains an open question. The Jefferson Council trusts the Board of Visitors investigation to appraise the validity of the charges leveled by 128 UVA Medical Center professionals over the past several months.
But I was curious about the business context in which upcoding might have occurred. Might financial pressures have incentivized senior management to take a more aggressive approach to billing? Such background information would be useful to the investigation.
Several major events have roiled the UVA Health System since 2020 when Craig Kent became CEO and 2021 when Melina Kibbe took the helm as dean of the medical school: the COVID epidemic, the jettisoning of litigious debt-collection practices, and accounting misstatements stemming from the acquisition of three community hospitals.
After a close review of Medical Center finances, here is my bottom line: allegations that UVA began billing more aggressively two to three years ago coincide with a surge in revenue per patient beginning in fiscal 2022. But many factors affect hospital revenues, so I am reluctant to draw any conclusion beyond suggesting that accusations of upcoding warrant a closer look.










