Covering Louisiana
State auditor probe Madison Parish hospital
Posted: Aug 3, 2012 10:33 AM by AP
TALLULAH, La. (AP) - Madison Parish Hospital, which has exceeded revenues for the past two years, is being investigated by the Louisiana Legislative Auditor's Office.
Legislative Auditor Daryl Purpera tells The News-Star a team from the office's compliance audit section has been reviewing the hospital's financial records for the past four weeks.
He declined to reveal the nature of the investigation, but said, "our compliance auditors look at financial records for improper transactions and improprieties."
He said the investigation is not close to completion. However, once auditors complete the investigation, a public report will be issued.
"Once they complete their work, we'll produce a report and send it to the hospital and give them two weeks for response," he said.
Others mentioned in the audit also would have two weeks to respond, Purpera said.
Hospital Service District Board Commissioner Marjorie Day said she was not aware of the reasons behind the investigation.
"They were supposed to talk to me, but they haven't yet," she said.
At a July 11 special meeting of the Hospital Service District's board of commissioners, the board accepted administrator Wendell Alford's resignation, effective 180 days from July 11.
In the meantime, Paula Walker will serve as interim administrator.
Walker declined to comment on the ongoing investigation by the Legislative Auditor's Office. She said hospital officials are awaiting the final report.
According to the most recent audit of hospital finances, the hospital has exceeded revenues for the past two years.
The audit of the 2009 and 2010 fiscal years showed the hospital had an operating income loss of $1.6 million and $618,515 million respectively.
Revenues in 2009 were $13.2 million while total operating expenses were $14.8 million.
Revenues in 2010 were $13.6 million compared to $14.2 million in total operating expenses.
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