Ex-Iowa hospital CEO charged with theft after auditor's investigation

The former CEO of Regional Medical Center in Manchester, Iowa, and the hospital's former system fund development director have been charged with first-degree theft, according to a Radio Iowa report.

Former CEO Lon Butikofer, PhD, and former system fund and development director Mike Briggs were arrested and charged over the weekend, roughly four months after the Iowa Auditor's Office released a report on an investigation into Regional Medical Center. According to the audit report, Dr. Butikofer and Mr. Briggs misused hospital funds during an eight-year period.

The state investigation found the two individuals made more than $28,000 of unsupported disbursements and more than $256,000 in improper disbursements between Jan. 1, 2009, and March 15, 2017, which included $192,000 in improper payroll costs for unrecorded paid leave, according to Radio Iowa.

The state launched the investigation at the request of hospital officials after concerns surfaced two years ago over travel reimbursements to the two former executives. In February 2017, Mr. Briggs was fired from the hospital and Dr. Butikofer resigned, according to the report.

Access the full Radio Iowa article here.

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