The University of Medicine and Dentistry of New Jersey faces new allegations of inflating medical costs by at least $21 million a year and increasing federal reimbursements for the hospital, according to a weekend report in the Newark Star-Ledger.

The allegations come as the school prepares to borrow up to $575 million through the New Jersey Higher Educational Facilities Authority to refinance prior debt. The authority approved the bond transaction last week and officials expect to issue the debt in December or January. The NJHEFA declined to comment on the allegations.

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