fraud charges
Accounting flaws at Westchester Medical Center
An audit by New York State has found mismanagement and inept accounting practices at Westchester Medical Center but exonerated the facility of fraud charges. The new report details the spectacular virtual collapse of a hospital which was $7 million in the black in 2000 but over the next four years managed to find ways to lose a staggering $200 million. The audit determined that accounting estimates at the hospital were off by a shocking degree, usually by millions of dollars every month. …
... Read more...Scrushy legal fight not over
The acquittal of ex-HealthSouth CEO Richard Scrushy on federal fraud charges dominates healthcare news this morning. Most legal observers had predicted a guilty verdict on the strength of the evidence against Scrushy. A Birmingham, Alabama jury was not convinced, however. The Wall Street Journal notes that "the acquittal casts a long shadow on the Sarbanes-Oxley law in its first test."
The ex-CEO will now try to enforce a clause in his employment agreement which his …
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