Former hospital CEO guilty of misusing funds

Wichita — The former chief executive officer at Halstead Hospital has pleaded guilty to misusing funds deducted from employee paychecks.

Barry Nelson, now of McKinney, Texas, pleaded guilty Thursday in U.S. District Court in Wichita to theft and embezzlement.

Prosecutors say Nelson collected about $215,000 in health care premiums through employees’ payroll deductions and failed to forward the money to an insurance company or use it to pay medical claims.

The money was allegedly retained in the general assets of the hospital and used for other undisclosed purposes. Prosecutors also said Nelson took about $21,000 in employee contributions to the 401(k) retirement plan.

The plea came more than two years after Harvey County sheriff’s authorities began an investigation into employees’ claims their health insurance and retirement plans were mishandled.