Archive for Sunday, May 11, 2003

Hospital CFO resigns after accounting error

May 11, 2003


— The vice president and chief financial officer of Great Bend's Central Kansas Medical Center has resigned in the wake of a million-dollar error.

Judy Scott's office underestimated by $1.6 million the hospital cash reserves needed to cover shortfalls in reimbursements to the hospital from Medicare and Medicaid, said Tom Sommers, hospital president and CEO.

"Payments provided by Medicare and Medicaid do not cover the cost of providing services," Sommers said. "CKMC's percentage of Medicare patients has risen 7.8 percent over the past two years. The decreasing population and increased competition for our market intensifies this quandary."

Scott discovered the mistake during the closing of March's internal financial statements, a hospital spokeswoman said.

She immediately reported the mistake to Sommers, who informed the hospital's board of directors.

"Catholic Health Initiative standard procedures were not being followed, nor was the process monitored properly," said Dr. Edward Jones, chairman of the hospital board.

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