Audit of New Mexico hospital finds mismanagement, unapproved CEO pay

Gallup, N.M.-based Rehoboth McKinley Christian Hospital has been improperly managed and run, according to a state audit report mentioned by the Los Alamos Daily Post.

Morgan Haefner –
Wednesday, September 16th, 2020
Print|Email.

The state auditor sent its report to the Internal Revenue Service and other oversight agencies, according to the paper.

Check out the complete report here.

In the special audit report, state auditor Brian Colón discovered issues associated with management agreements, inappropriate reimbursements and infractions of internal policies at the medical facility, to name a few issues. In one example mentioned by the report, the audit discovered a noncompetitive contract was awarded to Invictus Healthcare Management to oversee operations at the healthcare facility, which was against its policies.

© Copyright ASC COMMUNICATIONS 2020. Intrigued in LINKING to or REPRINTING this content? View our policies by clicking here.

At the time, Invictus CEO likewise held the COO position at the hospital. The audit stated Rehoboth McKinley permitted Invictus to incorrectly overcharge it more than $750,000 for night shift staffing services that werent received, in addition to excess hours for doctors who werent punished for poor performance. The audit states the contract wasnt examined appropriately by healthcare facility leaders.

More short articles on leadership: Advocate Aurora CNO Adrienne Schultz on her health care motivations, the challenges of being a female leader and striking a work-life balanceKaiser acknowledged as carbon-neutral health systemBiggest clinical concerns within the next 3-5 years: 3 CCOs weigh in

In addition, the board of trustees didnt approve settlement for its previous CEO, David Conejo, according to the audit findings mentioned by the Los Alamos Daily Post. While Rehoboth McKinley is a smaller, 60-bed healthcare facility, in 2018 Mr. Conejo received almost as much settlement– $629,000– as the CEO of the states biggest, 628-bed health center, who made $676,000.

The audit findings come after the board of Rehoboth McKinley fired Mr. Conejo as CEO June 11, about a month after a group of staff alleged mismanagement and authorized a no-confidence vote. Mr. Conejo later on sued the healthcare facility, implicating his previous employer of breaching a management agreement with his own management business and actively promoting incorrect and deceptive information about the business.

.

At the time, Invictus CEO also held the COO position at the healthcare facility. The audit stated Rehoboth McKinley permitted Invictus to incorrectly overcharge it more than $750,000 for night shift staffing services that werent gotten, as well as excess hours for physicians who werent penalized for bad performance. The audit states the agreement wasnt reviewed correctly by medical facility leaders.