State to look into Oesterling practice

Former University Chief Urologist Joseph Oesterling, who resigned in July after University officials discovered his trail of billing fraud, is undergoing a state investigation into allegations surrounding his clinical practice.

Tom Lindsay, director of Michigan's Office of Health Services in the Department of Consumer & Industry Services, said parts of the exploration are already underway.

"We're in the process of the investigation," Lindsay said. "It will be several months before we decide if we have significant grounds to do anything."

Lindsay said he could not elaborate on which areas of Oesterling's practice will receive scrutiny during the coming months, but said the examination will not focus on claims of financial impropriety, as did the previous investigation.

While searching through Oesterling's billing records during an investigation last year, University officials found that Oesterling had committed several offenses. The offense included the double-and triple-billing of patients and false recording of travel expenditures, violating University requirements regarding outside employment and using University resources for personal profit.

Shortly after the conclusion in July of the University's eight-month investigation, Oesterling pleaded no contest in Washtenaw County Court to a felony larceny charge of misbilling airfare. He then resigned from his post.

At his sentencing, Oesterling was placed on one-year probation and was ordered to pay a $5,000 fine and perform 120 hours of community service. His license, which was later suspended for three months, will be valid again in March.

Prior to forcing Oesterling's dismissal, the University suspended him from his duties at the University.

Lisa Baker, associate vice president for University relations, said she is not aware of any interaction between the University and the state's Office of Health Services that could be the impetus for the new investigation into Oesterling's practice.

"We don't have any new information, so they have not been in contact with us that I know," Baker said.

Baker said Oesterling has paid the University about $150,000 that did not belong to him. This money included travel expenses, University funds and resources he used illegally while working on a book.

"Dr. Oesterling has repaid the University a little over $150,000 and at this point, we would consider the matter closed," Baker said.

Oesterling plans to enter a private urology practice in Saginaw, Mich., after regaining his license.

02-11-98