Phoebe Putney offers explanation about money -, Albany News, Weather, Sports

Phoebe Putney offers explanation about money

June 15, 2005

Albany-- Wednesday, the hospital responded to allegations that $1.5 million is missing from the hospital's off-shore accounts.

Phoebe executives said an accounting discrepancy by a consultant showed the account was down $1.5 million in 2003. They say the mistake happened when a consultant included a big insurance claim that was supposed to be reported in a different category.

Phoebe CFO Kerry Loudermilk attributes the allegations to Phoebe critic Dr. John Bagnato.

"The Bagnato and Scruggs conspiracy is all about trying to get money and take money from community hospitals around the country. Our mission is still focused on providing the highest quality of care at the lowest cost that we can to our community."

Bagnato says when he learned of the discrepancy, he merely alerted the President of the Medical Association.

Phoebe leaders said there were also other allegations Phoebe had some improper expenses, but they wouldn't elaborate. They said the review committee found the expenses were legit.