Idaho AG, Bingham Memorial reach agreement over alleged misuse of charitable assets

The Idaho Office of the Attorney General has sealed a three-year investigation into allegations that Blackfoot-based Bingham Memorial Hospital executives misused charitable assets, according to the Idaho State Journal.

Bingham Memorial Hospital and the Attorney General Lawrence Wasden have also reached an agreement, which requires the hospital to review financial records and confirm it has received reimbursement for any unauthorized personal charges. If necessary, it will be required to revise its policies and procedures to guarantee charitable assets are only used in the best interest of the hospital. BMH has also agreed to pay the AG $50,000 as reimbursement for investigative costs and legal fees, according to the report.

Mr. Wasden opened the investigation into the hospital following allegations that BMH officials misused some charitable assets between 2009 and 2012. The investigation turned up several issues, including the unauthorized use of BMH charitable assets by International Consulting Services, a former for-profit company. ICS allegedly used charitable assets to fund its operations and did not reimburse the hospital. Some BMH executives were associated with ICS.

Additionally, the Attorney General's investigation found the hospital did not collect timely records of executives' credit card charges, and executives allegedly used charitable assets to purchase personal goods and services without providing valid documentation to warrant repayment to the hospital.

"After an exhaustive investigation, I'm pleased we've reached an agreement that will bring about change and enhance the level of accountability at BMH," said Mr. Wasden. "My hope now is that BMH and Idaho's other nonprofit hospitals learn from this and understand just how seriously I take my duty to protect charitable trust assets."

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