Nebraska hospital executive resigns amid allegations of $38,000 in improper charges
State auditor’s letter, supporting evidence have been provided to law enforcement
LINCOLN, Neb. (WOWT) - The top executive of a struggling rural Nebraska hospital has resigned abruptly.
He resigned amid allegations of more than $38,000 in improper credit card charges, according to a letter released Tuesday morning by Nebraska State Auditor Mike Foley.
The audit concerns Warren Memorial Hospital, also known as the Friend Community Healthcare System. The hospital is owned by the city of Friend.
The former administrator has not been named.
The letter and supporting evidence are being provided to law enforcement agencies, Foley said. His office also was informed that the former administrator is attempting to reimburse the hospital for its financial losses and related legal expenses.
The audit lists questionable expenses including airline ticket upgrades, hotel charges, streaming subscriptions, retail purchases and dining expenses that were reimbursed with hospital funds.
The letter also alleges the former administrator tried to mislead auditors by saying he opened a second hospital credit card in his own name because the first card had been canceled for nonpayment.
Auditors found the first card was still in use when the second card was obtained, according to the letter.
The Friend Community Healthcare System Board of Directors releasing a statement, saying in part:
“Hospital leadership recently received information regarding potential non-compliance with organizational expense reimbursement and travel policies. In response, the Board immediately authorized a thorough independent review conducted by external auditing professionals.”
The statement goes on to say that following the findings of the audit, the Board asked for and accepted the resignation of the Chief Executive Officer. The Board says the audit found no issues with broader hospital finances.
The Board has appointed Interim CEO Ron Te Brink while a search for a permanent Chief Executive Officer is conducted.
Daily operations, emergency services, and patient care at Friend Community Healthcare System remain uninterrupted.
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