NEWARK – A Haddon Township doctor is barred from practice for six months beginning today, to be followed by a four-and-a-half year probationary period during which his practice will be limited.

Dennis M. Scardigli, M.D., was also ordered to reimburse the State Board of Medical Examiners (BME) $135,000 for its costs in investigating allegations against him. He has already paid a $30,000 civil penalty. Scardigli, who maintained an office in Haddon Township, also agreed to dissolve his corporate entities, Psychophysiological Assessment and Treatment Center and South Jersey Diagnostics.

Under terms of a settlement agreement with the BME, Scardigli agreed not to contest an administrative complaint filed in October 2003 alleging that he had been conducting inadequate clinical examinations; preparing inadequate records of motor vehicle accident patients; and submitting bills to third party payors containing inflated or other improper payment information. It was also alleged that Scardigli made medically unnecessary referrals of patients to his other coroporations, Psychophysiological Assessment and Treatment Center, and South Jersey Diagnostics without disclosing his ownship and without informing the patients of their rights to go elsewhere for testing or treatment.

Even after the end of the probation period, Scardigli cannot treat motor vehicle or personal injury cases, must not bill for multiple types of tests alleged to be sham or unnecessary, must not ‘unbundle’ billing, cannot refer to outside specialists with whom he also had a financial relationship, and must observe other limitations.

"The serious nature of information received about Scardigli prompted the BME’s investigation. Rising medical costs hurt everyone and this crisis is made worse when doctors enrich themselves by taking advantage of vulnerable patients and the insurers who pay many of the bills," Attorney General Peter C. Harvey said.

During his six-month active suspension, Scardigli must attend and pass a BME-approved refresher course in internal medicine. He must also pass a course in professional ethics and a course in medical recordkeeping and coding. Scardigli must appear before the BME and show that these requirements were met before he is allowed to start the probationary period, during which the BME will randomly inspect Scardigli’s patient treatment and billing records.

"The doctor-patient relationship is built on trust. When we suspect that this trust has been violated, we will act swiftly to ensure the health and safety of the public," said Kimberly Ricketts, Consumer Affairs Director. "The BME, and our other boards, will continue to closely supervise all of their licensees and hold them accountable for their actions."

Deputy Attorney General Joan D. Gelber represented the State in this matter.

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