Oregon hospital fires COO after 4 days on the job

Bay Area Hospital in Coos Bay, Ore., fired newly hired COO Larry Butler Jr. after four days of employment and learning of his criminal history.

Mr. Butler was named COO of the hospital in May. He was employed four days before the criminal history was discovered, hospital spokesperson Kim Winker told Becker's

"He was immediately terminated upon learning about [his] background," she said.

In August 2015, Mr. Butler was sentenced to five years in federal prison for defrauding two of his former employers, according to the Justice Department.  

Mr. Butler was convicted of wire fraud and false representation of a Social Security number. The Justice Department said he used false credentials, a false Social Security number and other false documentation, to defraud Metairie-based Louisiana Health Cooperative and Baton Rouge, La.-based Mary Bird Perkins Cancer Center. 

He also used company credit cards to pay for personal expenses, according to the Justice Department. 

In a statement, Bay Area Hospital said it uses a comprehensive background check process to vet new hires.

"Even the best system can be manipulated by an unscrupulous individual," the hospital said. "That said, BAH's process is consistent with industry standards, and includes, amongst other things, a full state, county and national criminal background check, a minimum of three professional reference checks and in-depth interviews." 

Mr. Butler was placed on suspension after the hospital learned of potential issues and fired upon learning about his criminal background. 

During Mr. Butler's employment, the hospital verified that no patient protected health information was accessed and he never had access to employees' sensitive personal information, according to the hospital statement.

Although there is no indication sensitive information was breached, the hospital said it is conducting an audit of its systems "to ensure that all private data has been maintained in full and strict confidence."

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