Antelope Valley District Hospital & Allegations of Embezzlement
The Antelope Valley District Hospital CEO, Michael Wall, and the CFO, Colette Nichols, have been placed on administrative leave, according to a report in the Antelope Valley Press.
The CEO recently received a 5% pay raise, increasing his annual salary from $770,000 plus benefits to $808,000, with the potential for incentive bonuses of up to 20% of his base salary. It seems odd that the CEO received a pay raise in view of the hospital’s poor performance record.
The Centers for Medicare and Medicaid have rated Antelope Valley Hospital as a 1-Star hospital, the lowest rating given by CMS. That places in the hospital in the lower 5.68% of hospital nationwide.
Executives Wall and Nichols were put on administrative leave while an investigation of allegations of embezzlement and other complaints is conducted. The CEO denied any wrongdoing.
The CEO, Mr. Wall, was authorized to spend up to $200,000 without board approval. It turned out he created a foundation in the name of the CFO to empower young women and he was about to make a $200,000 donation to the foundation when suspicions were aroused. When questions were asked about the foundation he created, Mr. Wall dissolved the foundation before issuing any funds.
A special meeting is scheduled for Oct. 31 for the board to discuss the matter further, according to the newspaper report.