Kansas hospital's interim CEO was allegedly part of 20-hospital kickback scheme

Karsten Randolph, CFO and interim CEO of Shawnee (Kan.) Mission Health, part of Altamonte Springs, Fla.-based Adventist Health, feared he would go to jail over a kickback scheme at his former job, according to The Kansas City Star, which cited a lawsuit brought by whistle-blowers and the federal government.

Mr. Randolph was CFO of Hendersonville, N.C.-based Park Ridge Health, which is also part of Adventist Health, from 2011 to 2014. While CFO of Park Ridge Health, he allegedly participated in a scheme that involved hospitals paying kickbacks to physicians for referring patients for expensive tests and procedures.

Mr. Randolph allegedly knew about the kickbacks, but didn't report the illegal activity because he feared he would go to jail and that the amount the health system would have to pay back would be "insane," according to the report.

The kickback scheme allegedly involved 20 hospitals in the Adventist Health system. Adventist paid $118.7 million to settle the lawsuit in 2015.

By the time the lawsuit was resolved, Mr. Randolph had been transferred to Shawnee Mission Health, where he serves as CFO and as interim CEO until May 28, when a permanent CEO takes over, according to the report.

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