An internal investigation ordered by Kettering (Ohio) Health has confirmed that former senior executives and board members spent funds inappropriately — and the health system is seeking repayment.
In the summer of 2021, a pair of anonymous complaints were filed with the Ohio attorney general's office alleging abuse of charitable funds by Fred Manchur, Kettering Health's former CEO, and Dave Weigley, its former board chair. Mr. Weigley is also the current president of the Columbia Union Conference of Seventh-Day Adventists, of which Kettering Health is a direct affiliate.
The complaints alleged that Mr. Manchur traveled and remodeled his home using health system funds. A June report from the Dayton Daily News found documents linking Kettering Health Main Campus, formerly known as Kettering Medical Center, to Mr. Manchur's home. The hospital agreed to buy the $1 million historic home behind its campus "pending board approval" weeks before Mr. Manchur purchased it in 2008, according to a purchase agreement signed by former CFO Russ Wetherell. It was never confirmed if board members actually discussed the purchase.
Mr. Weigley was also accused of misusing funds to pay his automobile expenses.
Mr. Manchur retired last December, and Mr. Weigley left the board in January. Kettering Health President Wally Sackett and Chief Administrative Officer Terry Burns also left the system in October 2022.
In April, the health system announced it had hired an outside firm — including external legal counsel and forensic accountants — to investigate the claims. That investigation has concluded and implicated individuals formerly employed by Kettering Health, according to a Nov. 7 news release shared with Becker's.
"The findings of this investigation revealed financial impropriety related to the use of organizational funds for non-business purposes," the release said. "Kettering Health will be seeking repayment of these funds from the individuals involved and sharing information related to our investigation with the appropriate authorities."
The health system did not name those implicated; however, an earlier version of the news release obtained by Dayton Daily News specified "senior executives and board members" that are no longer with the organization.
"In addition, we have made significant changes to policies, procedures, and governance to ensure this type of behavior will not occur in the future," Kettering Health said in the release.