All 11 counts in an 8-month-old lawsuit filed in September against Wayne State University have been dismissed. University Pediatricians, a 220-member private pediatrics group once affiliated with Wayne State that practices at DMC Children’s Hospital of Michigan, accused the university of taking nearly $61 million in Medicaid funds. Michigan Court of Claims Judge Cynthia Stephens rejected University Pediatrician’s argument.
In her 28-page decision released Friday, Stephens ruled time and again that UP's allegations were "moot" or "futile" or "failed to state a claim." She said the group failed to prove any of its counts, including whether WSU President M. Roy Wilson, M.D., and David Hefner, former vice president of health affairs, were not entitled to immunity for their part in the alleged funding diversion scheme.
Dr. Herman B. Gray, chair of WSU’s Department of Pediatrics, hailed the judge’s decision to dismiss the case and said Wayne State used public dollars properly. “This is an outstanding decision for Wayne State University, and validates the university’s position that the Medicaid funds were used appropriately,” said Gray. “It has been our position that Wayne State has always acted with honesty and integrity, and that has been supported by this decisive legal victory.”