An internal audit of Little Rock, Ark.-based University of Arkansas for Medical Sciences found that the hospital laid off nearly 260 employees after adopting a budget that was based on incorrect financial information, according to The Telegraph.
Due to a reported financial misstatement, there was a more than $20 million difference between audited finances and information reported during fiscal year 2018. Instead of using a 2 percent or 3 percent growth rate for fiscal year 2018 in the budget, as is usually reported, the financial team used a 6.7 percent rate.
Medical center Chancellor Cam Patterson, MD, said the unsupported projections did not directly affect the layoffs.
"I think looking back, whether the numbers were supported or not, the revenue and expenses were what they were," said Dr. Patterson. "I think the work action would have happened regardless."