| $2.4m deal ends grants case Harvard, Beth Israel said
to misuse funds
By Alice Dembner, Globe Staff, 6/18/2004 Harvard University and Beth Israel Deaconess Medical Center together will pay $2.4 million to settle allegations that they misused four federal research and training grants, improperly billing the government for salaries and expenses, the US attorney's office said yesterday. Federal prosecutors allege the institutions violated the False Claims Act by collecting $1.9 million for expenses unrelated to the grants and for salaries of scientists who did not meet grant requirements. The investigation began in 1999, when Harvard alerted federal officials to potential problems with its handling of grants from the National Institute on Aging. In the settlement, Harvard and Beth Israel deny any intentional wrongdoing. The settlement closes the case against both institutions, which could have faced fines or suspension from federal research. Boston-area hospitals and universities are among the nation's leaders in securing grants from the National Institutes of Health, the parent agency of the aging institute. But the agreement specifically leaves open the possibility of further action against Dr. Jeanne Wei, the geriatrician who was the principal investigator for the grants. The agreement also requires the institutions to cooperate with "the government's investigation of individuals" involved with the four grants. Wei, the former head of Harvard's division on aging and Beth Israel's division of gerontology, resigned from those administrative posts in 1999 and left Harvard Medical School and the hospital in June 2002. She is currently a professor and executive vice chairman of the geriatrics department at the University of Arkansas for Medical Sciences. She did not respond to a request for comment yesterday. "This settlement should send a message that institutions who accept federal grant money, no matter who they are, must strictly adhere to the terms and conditions of those grants," said US Attorney Michael J. Sullivan in a statement. Sullivan's office declined to comment about any continuing investigation. The case was investigated with the help of the inspector general of the US Department of Health and Human Services, which has made grants compliance one of its top priorities. Harvard Medical School officials said in a statement that "there was no evidence that any of the NIH grant funds were diverted for personal or non-research uses." The case spurred both Harvard and Beth Israel to toughen their oversight of grants. Harvard established an office of research compliance. Larry Ray, vice president of research operations for Beth Israel, said, "The issues that gave rise to this situation have long since been corrected." The grants, for 1994 through 1999, totaled $5.4 million. The National Institute on Aging awarded them to support training in aging research for young doctor-scientists and to fund research on the biology of aging and on ways to promote independent living for older Americans. In 1999, Beth Israel paid $920,000 to settle a separate federal case alleging improper use of a grant for genetic research. Shortly thereafter, Harvard officials began investigating possible problems in one grant to the medical school division on aging. After reporting the problems to the government, Harvard and Beth Israel hired auditors to investigate all four grants. Prosecutors said the institutions shared those results with the government and cooperated fully with its investigation. In 2002, Harvard made an initial payment of $850,188 toward a settlement, but that was not disclosed until yesterday. The final settlement says Beth Israel sent invoices to Harvard, and Harvard billed the government for salaries of physicians who were not working on the grants or who did not work as many hours as the grant required. In addition, Harvard billed for some scientists who were not US citizens, which was required under the terms of the training grant. Harvard also billed for equipment, supplies, and expenses for research animals that were unrelated to the grant or incurred by ineligible scientists, according to the settlement. Harvard agreed to pay $1.3 million, in addition to the 2002 payment, while Beth Israel will pay $1.08 million. Alice Dembner can be reached at Dembner@globe.com. This story ran on page C1 of the Boston Globe on 6/18/2004.
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