New York State Comptroller Thomas DiNapoli today announced that his office has scheduled an audit of the State University of New York (SUNY) Upstate Medical University’s contracts with Salina-based MedBest Medical Management, Inc.
The state comptroller’s planned audit of the contracts follows SUNY’s decision to place Dr. David Smith, former president of Upstate Medical, on leave due to “an ongoing review of compensation issues” and “recent health issues.”
Smith then issued a statement on Thursday indicating his plan to resign from his position as president.
“Recent reports of the relationship of the former president of SUNY Upstate Medical University to MedBest have raised significant red flags about this company’s contracts with the state,” DiNapoli said in today’s news release. “My auditors will examine whether SUNY Upstate’s use of this single-source contract with MedBest is in violation of state law and identify if any abuse occurred.”
SUNY Upstate has a $22 million single-source contract with MedBest to provide technical support to implement an electronic-medical record and practice-management system, DiNapoli’s office said.
The Albany Times-Union earlier this week had posted a copy of a Nov. 1 letter SUNY Chancellor Nancy Zimpher wrote to Smith on its website explaining the medical school’s concerns and reasons for its review.
In it, Zimpher indicated “that in 2010 you were actively involved in the establishment of a deferred-compensation plan through MedBest Medical Management, Inc. — an entity affiliated with the Upstate University Health System — that to date totals approximately $349,295.59 for you personally, again without my approval.”
The same letter indicates that Smith “authorized and accepted a substantial increase” in his compensation from Pediatric Service Group, LLP, without Zimpher’s approval.
Pediatric Service Group, LLP is part of Upstate Medical University, according to the school’s website.
Contact Reinhardt at ereinhardt@cnybj.com