Persistance and Tenacity, requires a new chapter, a new beginning....

Friday, September 23, 2011

Community member solves accounting error at hospital: KVHD under Fire

My meeting with Mr. McGlew: Community member fought to prove accounting error: What happened to HFS, the auditor, or Kern Valley Healthcare District?



Kern Valley Healthcare District Chief Financial Officer, Chester Beedle, didn't take well to the idea he had a mistake on the books, claiming there was no such thing over a period of several months last year, ignoring a local resident.

Beedle is a high paid CFO in comparison to the position in other comparable sized hospitals.

His resistance to the issue could have left 75K dollars disappearing into the fiscal year where even Rick Jackson, the "regular" and mostly overused auditor, couldn't find it.

HFS, Rick Jackson, Cal Mtg. working with the wrong numbers

Then the question becomes even more strange, as HFS, was in the hospital to do a report which was supposed to help KVHD through another "default' with debt insurer, Cal Mtg., yet they did NOT find the missing monies.

The HFS engagement as they call it was derailed as the company was heavily criticized by board member, hospitalist, Dr. Robert Goss DO, who said they had left "giant holes" in their report.

HFS missed the 75K dollar accounting error, which would put the figures they gathered for the report...umm, 75 thousand dollars off. Would that money have thrown off their report, and the giant hole, was made of this figure?

During the time frame May 2010 to November 2010, HFS was in the books looking around, and auditor Rick Jackson, also had the numbers, but it was not the "professionals" that brought out the mistakes: it was a woman in the community who simply began reading the KVHD financials.

I do believe this woman deserves a finder's fee, as that money would be long gone had she not persisted, trying to get around the CFO's claims that there were no mistakes on his books. (so then it wasn't a mistake?)

After months of effort to be heard on her discovery in the financials, she met with KVHD CEO, Tim McGlew, who said to her after five months, that he had "discovered" the mistake.

The meeting is on video below, showing clearly, that McGlew waited for months, and then suddenly, "Oh, my God" he exclaims, he had found it the night before.

In the community they do not trust


Certain board members and CFO smirked and ignored the woman's claim as I'm sure they thought there could be no way someone might be "alert" as she wasn't paid she just happened to enjoy reading the financials. (I missed the error too, it was hidden behind that million dollar dinosaur we call the "old debt.")

Dr. Gross, DO, formerly the chairman of the Finance Committee never even asked that it be considered. Yep, "formerly" chairman of the Finance committee.

There was no effort for five months to find this error, or to even consider that they could have made a boo boo. The Chairwoman of the board did not even ask that it be looked into, as Victoria Alwin, spends more time with her three minute egg timer trying to control public input as the board has repeatedly complained that meetings run long.

You would think there were enough "eyes" to catch this 75K salmon swimming up river, but apparently these eyes need glasses or we need to hire on or say vote in a whole different type of board: one that is open and one that can add.

75K minus 144


During the way overdue meeting, Tim McGlew, explains he had suddenly found the error the night before: Of course this was several months after the woman persisted in her contention there was a 75K dollar "problem."

She complained at the meeting in front of the board members who had the same documents in front of them as the mathematically superior resident and if there was ambition to understand the books, the board members could have, I mean, should have, done their math.

Instead of backing down, she made a call to Chet Beedle the numbers wizard, and reported she had been told there was no mistake and not to call again. Then he humbly, "positively" hung up on her.

Next was Heidi Sage, as a visit was made, in an effort to help, and the woman claims to have been berated and escorted out.

(Now I agree with McGlew, "Oh my God." )




"I told them they need to own up to their mistakes: Tim McGlew KVHD CEO. Then he blamed it on Barbara Figeuroa, the KVHD controller, who always remains in control as she seems to always be the one they turn to when they need to explain away some error.

On the video you will hear McGlew defending Chet Beedle, but pointing the finger at "Hidey Sage."

Just to remind Mr. McGlew that he is the CEO, who should have taken it upon himself to follow his own words he used when I suggested we sell or lease the hospital as a solution to the debt or option in lieu of Measure G: "...that would take away the input of the community."

Obviously, that is a cursory response, as he didn't follow his own advice when he allowed this financial error to be overlooked, I imagine if McGlew can drive a Jaguar, he can afford a good calculator. Why didn't he catch the error or any of them?

I'm now sure this woman deserves a "finders fee" and I'm going to suggest that she at least be given 1% of the money which would have gotten away....


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