6 years, 9 months ago by Scott Hardy
Galloway; decisions by management, board "astounding in their irresponsibility"
Missouri State Auditor Nicole Galloway says her office has found evidence of $90 million in inappropriate lab billings by Putnam County Memorial Hospital leadership and associates.
Galloway's office Wednesday released an audit of the hospital, which started after auditors identified serious problems with the hospital's finances during an audit of Putnam County. In a statement, Galloway says that the audit uncovered a billing scheme, where a company hired for lab services, Hospital Lab Partners and its' affiliates, did lab work across the country, but the hospital would bill the insurance companies using its account. In exchange, the hospital got a cut of the insurance pay-outs. Since last November, it's estimated that the hospital received more than $90 million in insurance payments and passed most of it along to the lab company and its affiliates. The vast majority of billings were for patients who'd never been to the hospital. According to Galloway, the scheme reduced the hospital to little more than a shell organization for labs across the country. Galloway also alleges that the hospital paid out more than $10 million in fees to 33 employees who don't work for the hospital, and who live out-of-state. The audit also alleges that David Byrns, whose company was hired last November to manage the hospital, paid more than $700,000 to his company, and paid himself an additional $200,000 annual salary out of county hospital funds without board approval. He was also reimbursed by the hospital for at least $5,000 in expenses, including alcohol, cigarettes, car washes and golf outings.
In the statement, Galloway called the decisions by Putnam County Hospital management and the board "astounding in their irresponsibility." She's also turned over records and information uncovered by the audit to state and federal law enforcement authorities. The full audit is below.
