State auditor: Madison Hospital is improving
The Madison Parish Hospital Service District’s most recent audit had five findings and showed an operating deficit of almost $500,000. But, that's a stark contrast from two years ago when there was a possibility it could close.
The district’s 2014 audit was released Monday by the Legislative Auditor.
For the past fiscal year, the district had five findings: capital lease was not recorded properly; five of the nine board members did not complete the required financial disclosure form and submit it to the Louisiana Board of Ethics; capital assets inventory was not maintained; accrued vacation amounts were not recorded properly; and the district did not submit its audited financial statements within six months of the close of its fiscal year, as required.
According to the 2014 audit, the district had operating revenue of $14.6 million and operating expenses of $15.1 million, resulting in $489,667 in loss from operations. Last year’s audit stated the district ran a $2.2 million deficit and racked up 36 deficiencies.
Louisiana Legislative Auditor Daryl Purpera said his office is pleased with the hospital's turnaround and expects the fiscal administrator may not be needed in the near future.
"I look at Madison Hospital as being a poster child for the reason why we need fiscal administrators and a success story. You can see from the findings that Madison Hospital is turning around from a record-keeping and accounting perspective. They've corrected a lot of problems where they weren't collecting funds or billing for certain things. They've really got a lot of things going right and it's been exciting to see the hospital turn around" Purpera said.
"We believe the hospital will be profitable and sustainable in the future."
The district has experienced years of financial instability, and in 2013, an investigation revealed its former chief executive officer defrauded the district of $5 million.
Early in 2013, the Legislative Auditor’s Office released a lengthy report that stated more than $5 million in fraudulent bills were submitted to the Tallulah hospital with the proceeds split between former administrator Wendell Alford, Tech Solutions LLC agent Casey Hughes and insurance agent Russell Ham of Insurance World.
Alford was sentenced to 37 months in prison and three years supervised probation and is responsible for $1,383,874 in restitution.
Hughes was sentenced to spend 12 months in prison and ordered to pay $566,874 in restitution. Ham will serve 14 months in prison and was ordered to pay $817,000 in restitution. Hughes and Ham will have three years supervised release following their prison terms.