UNR Med Statement Regarding Coverage of Due Diligence Audit

News & Events

In November 2013, the Board of Regents of the Nevada System of Higher Education approved a plan for the development of a new allopathic medical school at the University of Nevada, Las Vegas (UNLV). The plan included the transfer of responsibility for most Las Vegas based medical education and residency programs operated by the University of Nevada, Reno School of Medicine (UNR Med) to the new UNLV School of Medicine. This transition process included analysis of how best to transition the clinical operations in southern Nevada from UNR Med's faculty practice plan (ICS) to the newly formed UNLV School of Medicine faculty practice plan (UNLV Medicine).

In 2016, the firm of Crowe Horwath was hired by ICS to prepare a Due Diligence Audit of the operations of ICS. The purpose of the Due Diligence Audit was to evaluate the accuracy of physician assigned diagnostics and billing codes (commonly referred to as Current Procedural Terminology or "CPT" codes) to patient care. Contrary to recent media reports, the Due Diligence Audit does not make findings or conclusions related to Medicare fraud or abuse. The Due Diligence Audit was intended as a tool that would allow the UNLV School of Medicine to make informed hiring decisions related to physicians that might transfer from UNR Med faculty positions to the UNLV School of Medicine faculty and clinical positions. The results of the Due Diligence Audit were presented to representatives of NSHE, UNR Med and the UNLV School of Medicine in July of 2016. After the results were presented, the UNLV School of Medicine proceeded to make offers of employment to nearly all UNR Med faculty reviewed as part of the audit.

The Regents were informed of the planning of the Due Diligence Audit at the March 2016 Board of Regents meeting by the Deans of UNR Med and UNLV School of Medicine. Additionally, the Due Diligence Audit was performed based on a recommendation from the Statewide Steering Committee for Medical Education, which included representatives from NSHE, UNR Med and the UNLV School of Medicine. That committee was established to coordinate a smooth transition of responsibility for medical education in southern Nevada. The Due Diligence Audit is referred to in the Contract Regarding the Transition for Medical Education in Southern Nevada (the "Transition Agreement"), which was approved by the Board of Regents in September 2016. The Transition Agreement, which has been made available to the media and the public, provides for the orderly transition of assets, operations and faculty between the two medical schools and practice plans.

The Due Diligence Audit is a confidential document protected under the attorney-client privilege, the attorney work product privilege and the deliberative process privilege. It is also protected under Section 5.6.2 of the NSHE Code relating to the protection of personnel information. Accordingly, the Due Diligence Audit cannot be made publicly available and the University of Nevada, Reno and UNR Med cannot answer questions or provide further comments on the content of the Due Diligence Audit.

Media Contacts

Julie Ardito, APR
Senior Director, Advancement and Engagement
Office: (775) 784-6006

Tessa Bowen, MPA
Communications Manager, Advancement and Engagement
Office: (775) 682-9254

The University of Nevada, Reno School of Medicine, Nevada's first public medical school, is a community-based, research-intensive medical school with a statewide vision for a healthy Nevada. Established in 1969, UNR Med is improving the health and well-being of all Nevadans and their communities through excellence in student education, postgraduate training and clinical care, research with local, national and global impact and a culture of diversity and inclusion.