LMH Health fires CFO after investigation into felonies

Photo: John Rensten/Getty Images

LMH Health, based in Lawrence, Kansas, terminated their chief financial officer, Mike Rogers, in October, and this week the hospital revealed the unusual reason why: Rogers was operating under an assumed name and hid the fact that he was a convicted felon.

The hospital has now confirmed that Rogers was once known by his given name, Michael Patrick Brunton, and that he had been convicted of felonies in 2005 and 2007. He had legally changed his name to Mike Rogers.

As Brunton, he was twice accused of financial crimes, according to ksn.com. Regarding the first, as part of a plea agreement he admitted to running an online auction scam in which he auctioned off football tickets and a Rolex watch – with the winning bidders never receiving either.

While serving probation for that crime, he was employed by Franklin Parrish Medical Center in Winnsboro, Louisiana, in a financial role, when he was arrested there and accused of misusing the hospital's credit cards and attempting to extort money from hospital administrators, according to an archived article from the Associated Press.

Rogers did not disclose this information in his application or during the interview process, LMH Health said, and the hospital only became aware of the issue after noticing "inconsistencies regarding his identity."

Upon the discovery, Rogers was immediately placed on administrative leave, and LMH Health launched an internal process to identify gaps that allowed the fraudulent information to escape notice. 

"This analysis is consistent with being a High Reliability Organization – an organization that operates in complex, high-hazard domains for extended periods without serious accidents or catastrophic failures," the hospital said.

The findings of that process were presented to the LMH Health Board of Trustees at its November meeting. Due to the nature of the report, it was discussed in an executive session with legal counsel.

The report itself will not be made public because it contains protected records, said LMH Health, adding that it is making "process improvements" as a result of the findings.

"This was a very concerning situation, yet because it was caught quickly, and because of existing security protocol, it posed no risk to patient safety or to our finances," the hospital said.

WHAT'S THE IMPACT

In her comments at the November 29 board meeting, Board of Trustees Chair Pat Miller said that high reliability organizations are not without mistakes or missteps, but they are transparent about their errors and take appropriate actions to ensure the mistakes do not happen again.

"The Trustees supported Senior Leadership's decision to publicly disclose the reason for firing the CFO," said Miller. "An organization that asks its employees to be open and honest about identifying and correcting mistakes and potential problems must demonstrate these same qualities. Additionally, through our transparency, it may protect other organizations that encounter this individual and/or similar circumstances"

"Apparently, LMH Health was not the first hospital that hired then quickly fired Mr. Rogers this calendar year," she said. "Had the other hospital disclosed its experience, this person would have been easily excluded during LMH's CFO search process."

The hospital said it has already made several changes in light of the findings, and will make more over the coming months. Among other measures, LMH Health said it would reduce communication gaps through a formalized system with checks and balances, and ensure a single point of contact for hiring information.

In addition to third-party online application portals, applicants will be asked to submit a formal resume along with answers to screening questions. And the hospital said it would use primary source verification and other direct methods for future hires, as well as extend the timeframe for background checks beyond industry standards for key positions.

THE LARGER TREND

During the meeting, Miller expressed the board's appreciation for the thoroughness of the assessment and the recommended actions.  She noted that the organization's strong institutional controls protected its financial resources.

"The former CFO never had access to LMH Health's funds, not even a credit card," said Miller. "LMH undergoes a rigorous independent financial audit each year, the results of which are publicly disclosed. This event will undergo very close scrutiny during the audit and will be included in the audit findings."

ON THE RECORD

"Even the best organizations will make mistakes along the way; it's how we respond that defines us," said LMH President and CEO Russ Johnson. "I am grateful to and proud of the staff who quickly identified this situation and addressed it. They acted courageously and raised this issue to ensure we could take immediate action."
 

Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com