MRCH board audit reveals misallocation of federal grant funds

Mineral Regional Health Center CFO Karen Sullivan elaborated on the audit process for a $10.5 million federal Health Care Innovation Award received by MRHC from the Center for Medicare and Medicaid Innovation.

According to Sullivan, the MRHC Board of Directors authorized the audit process after they received information regarding concerns with the handling of the grant.

“There were no findings of embezzlement (in the audit), but I think you could say that there was a misallocation of funds,” Sullivan said. “I would say that the recommendations and answering to those recommendations is in the early stages, but this board is very engaged in answering to those recommendations. It’s early on in the process but they are on it.”

Sullivan added that due to public interest in the findings of the audit, the MRHC board might decide to release either the findings of the audit or a synopsis of those findings during Thursday’s meeting.

“I’m not sure though what our board will ultimately decide,” Sullivan said.

Sullivan reiterated that the board has the final say in whether information will be released and what the board plans to do with the findings.

“That audit did identify issues and recommendations were made out of it,” Sullivan said. “Our board is acting on those recommendations.”

According to Sullivan, the Health Care Innovation Award from CMMI came about as a result of the organizations attempt to reform health care.

“They are trying to get innovative about how we deliver health care,” Sullivan said.

“CMS said we need to get really innovative with how we deliver health care and they had three major purposes: increase quality, increase patient satisfaction and lower cost.”

Out of approximately 3,000 national applications for the grant 107 institutions received funding – including the Mineral Regional Health Center. Sullivan said the results of the audit will not impact the funding, rather create a need to correct certain issues before continuing forward.

“We are a not for profit hospital and we are also a not for profit community health center,” Sullivan said. “Our missions are to provide excellent primary care and acute care to the people of Mineral County and our region. Our dedication to that triple aim has not in any way been intruded upon.”