Former urology chief sentenced

By Heather Kamins
Daily Staff Reporter

Former University Urology Chief Joseph Oesterling was ordered July 21 to serve a yearlong probation, pay a $5,000 fine and fulfill 120 hours of community service for a felony larceny charge, to which he pleaded no contest in June.

Oesterling resigned in mid-June, in the wake of an eight-month investigation of his billing practices. Following the investigation, the University entered final proceedings to force Oesterling's dismissal.

Through the investigation into Oesterling's activities, University officials learned that as well as double- and triple-billing the University for travel expenses, Oesterling failed to declare hundreds of thousands of dollars in outside income from industries and private donations, according to documents released by the University under the Freedom of Information Act.

As partial restitution for his debt, Oesterling sent a check to the University for the amount of $105,000, said associate Vice President for University Relations Lisa Baker.

"Dr. Oesterling has admitted that this is money he owes to the University," Baker said. "The University of Michigan believes that additional money is owed to us by Dr. Oesterling."

Baker said the University is currently deciding whether or not to file a civil suit against Oesterling.

Oesterling, who has served on the School of Medicine's faculty since 1994, submitted his resignation on Tuesday, July 15 after the University took final steps to terminate his employment. Oesterling was suspended in March, when University President Lee Bollinger relieved him of all patient responsibilities in reaction to billing discrepancies. The University then, in conjunction with the Department of Public Safety, began an extensive investigation.

In a letter to Bollinger last week, School of Medicine Interim Dean Lorris Betz said the school had no other choice but to dismiss Oesterling. James Montie will continue as interim head of the of the Urology department.

"The conclusion I have reached is that Dr. Oesterling's conduct is so egregious and inconsistent with standards expected of faculty of the University of Michigan that termination proceedings must be implemented against him," Betz said.

In the letter, Betz provided a list of offenses calling for Oesterling's dismissal:

-- Unapproved and excessive, outside employment in violation of written University and School of Medicine requirements.

-- Undisclosed conflicts of interest resulting from dealings with pharmaceutical companies and other non-University entities.

-- Personal profits derived from University resources or efforts.

-- Multiple billing of expenses and falsification of related records.

Documents examined in the investigation, obtained under FOIA, show that Oesterling submitted false documents and receipts to the University.

Baker said Oesterling was explicitly informed about the rules and regulations for reported travel expenses and billing records.

09-03-97