Wyoming hospital claims former CEO concealed financial trouble from board

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Rock Springs, Wyo.-based Memorial Hospital of Sweetwater County alleged former CEO Jerry Klein hid financial information from the hospital board and overstepped his fiduciary duty, according to the Wyoming Business Report.

The hospital countersued Mr. Klein Wednesday after the former CEO filed a claim he was wrongfully terminated, according to the report. Mr. Klein, who resigned from Memorial Hospital in February, claimed the hospital never officially ended his contract and argued the hospital owed him at least $595,518.15 in compensation.

Memorial Hospital issued several allegations against Mr. Klein in its countersuit, including breach of contract and fraudulent behavior through the "conversion of money, assets and property to his own use and benefit," the report states.

The lawsuit also claims Mr. Klein was intentionally "draining" the hospital's funds as he pursued talks with the University of Utah in Salt Lake City to acquire Memorial Hospital as a limited liability company, in addition to other regional hospitals. Part of the talks allegedly included his promotion to CEO of the new company, according to the report.  

Lawsuit documents cite various events that reportedly occurred while Mr. Klein helmed the organization, such as dramatic increases in expenses, loses of more than $5 million in investment revenue and a reduction in on-hand cash from 245 days to 88 days.  

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