California's Kings County grand jury alleged that 32-bed Corcoran (Calif.) District Hospital used construction-earmarked $12.6 million bond money for expenses other than construction, according to a Hanford Sentinel report.
The hospital originally received $18 million in bond money for construction of a new hospital. According to the jury's report, in 2006 the hospital spent $291,000 of the construction bond money on hospital operating expenses. In addition, some employees received pay raises. Jonathan Brenn, the hospital's CEO, said the money was transferred from the bond fund to the hospital's general operations budget but that it was not used for pay raises.
The grand jury also alleged the hospital had a conflict of interest issue, lacked transparency and violated the state's open-meeting law.
The jury began an investigation of the hospital's activity when a complaint alleged there was a possible conflict of interest due to an employee's involvement in a 2008 acquisition of two lots near the existing hospital. The jury found the hospital had incomplete minutes and recommended training board members and administrators to properly record board meeting minutes to comply with the open-meeting law requirements.
The jury also found a lack of approval for the acquisition of properties and no formal appraisals for several property purchases made from 2005-2008. Mr. Brenn said these allegations were true, adding that many of the purchases were made before he became CEO in 2008.
Read the Hanford Sentinel report on Corcoran District Hospital.
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The hospital originally received $18 million in bond money for construction of a new hospital. According to the jury's report, in 2006 the hospital spent $291,000 of the construction bond money on hospital operating expenses. In addition, some employees received pay raises. Jonathan Brenn, the hospital's CEO, said the money was transferred from the bond fund to the hospital's general operations budget but that it was not used for pay raises.
The grand jury also alleged the hospital had a conflict of interest issue, lacked transparency and violated the state's open-meeting law.
The jury began an investigation of the hospital's activity when a complaint alleged there was a possible conflict of interest due to an employee's involvement in a 2008 acquisition of two lots near the existing hospital. The jury found the hospital had incomplete minutes and recommended training board members and administrators to properly record board meeting minutes to comply with the open-meeting law requirements.
The jury also found a lack of approval for the acquisition of properties and no formal appraisals for several property purchases made from 2005-2008. Mr. Brenn said these allegations were true, adding that many of the purchases were made before he became CEO in 2008.
Read the Hanford Sentinel report on Corcoran District Hospital.
Related Articles on Compliance With Regulations:
Key Compliance Considerations When Implementing EMRs
13 Key Questions for Hospital-Physician Relationships — Assessing Legal Compliance
Regulatory Challenges, Strategies for Hospital CEOs