Jefferson hospital officials, state auditor differ over 2003-04 employee payments

PORT TOWNSEND — An independent state accountability audit taken of Jefferson Healthcare hospital alleges that employees were overpaid by thousands of dollars during the audit period of 2003 and 2004. However, hospital officials say no one was overpaid.

Instead, they say, draws were given out before contracted paydays to three employees, which appeared to the auditors as overpayments.

“The bottom line is nobody was overpaid,” said Vic Dirksen, Jefferson Healthcare chief executive officer.

According to the Washington State Auditor’s Office report, urologist Bertram Levy, now retired from Jefferson Healthcare, was paid $17,757 more than he should have because estimates were used to compile a figure of payment.

Orthopedic surgeon Tristan McGovern received $75,000 in contract prepayments, resulting in an overpayment of $32,300.

Mark Reis, an orthopedic surgeon not currently contracted with the hospital, was paid $64,180 when he owed the hospital district $36,109 because he was previously overpaid.

“Based on this, we cannot do an advance on payments,” said Jim Chaney, Jefferson Healthcare chief financial officer.

He said it was a matter of timing why the draws, or three-month loan in Reis’ case, appeared to the auditors as overpayments.

‘No malfeasance’

“There was no malfeasance,” Hospital Commissioner Jill Buhler said.

“It did not cost the hospital any extra money. It was a procedural thing.”

“The [public hospital] district’s procedures were not sufficient to ensure valid contracts were in place,” according to the report .

“It also did not adequately monitor contracts to ensure expenses were appropriate, legal and in compliance with contract terms,” it said.

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