Dec 17, 2023

Kan. hospital making changes after CFO hid previous crimes

Posted Dec 17, 2023 9:00 PM
LMH Health -Google image
LMH Health -Google image

DOUGLAS COUNTY —Lawrence Memorial Hospital (LMH Health) continues to explain the circumstances surrounding the hiring of a Chief Financial Officer who had changed his name to hide his true identity and previous felony convictions.

According to a statement on the hospital web site, "As we have previously reported, LMH Health announced on October 30, 2023, that Mike Rogers was no longer in his role as Chief Financial Officer. On October 26, 2023, we became aware of inconsistencies regarding his identity."

"The next day, we confirmed he had legally changed his name, and that he had been convicted of felonies in 2007 and 2005 under his given name of Michael Patrick Brunton. Rogers did not disclose this and other important information in his application or during the interview process."

"We have also disclosed that Rogers was immediately placed on administrative leave, and LMH Health launched an internal process to identify gaps that allowed the fraudulent information to escape identification. 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 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. While the report itself will not be made public because it contains records protected by K.S.A. 45-221, LMH Health continues to place a strong emphasis on candor, trust, and accountability."

"To that end, we want our staff and the community to know we are making process improvements as a result of our 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."

"In her comments at the November 29, 2023, 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,” said Miller. “Had the other hospital disclosed its experience, this person would have been easily excluded during LMH’s CFO search process.”

"We have already made several changes in light of the findings and will make more over the next several months. Included are actions in the following three areas:

  1. Communication. We will reduce communication gaps through a formalized system with checks and balances and ensure a single point of contact for hiring information.
  2. Application process. In addition to third-party online application portals, applicants will be asked to submit a formal resume along with answers to screening questions.
  3. Documentation of credentials. We will use primary source verification and other direct methods for required elements of the position under consideration. We will also extend the timeframe for background checks beyond industry standards for key positions.

"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.”

LMH Health President and CEO Russ Johnson said, “Even the best organizations will make mistakes along the way; it’s how we respond that defines us. 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.”