08/15/2017
Missouri State Auditor Nicole Galloway today released an audit of Ray County Memorial Hospital, located in northwest Missouri. The audit was a part of a series of reviews initiated by Auditor Galloway of county hospitals focusing on financial and operating best practices.
"The Ray County Memorial Hospital helps serve the community by providing critical emergency treatment when it is needed most," Auditor Galloway said. "The recommendations resulting from my review of hospital finances and operations should ensure the business of the hospital is conducted as transparently and responsibly as possible."
The report found that the hospital has adopted the practice of offering yearly bonuses to all hospital staff, with a cost of more than $133,000 over a four year period. These payouts violate the Missouri Constitution's prohibition on bonus payments to public employees. In addition, the audit raises concerns with the hospital's adherence to the Sunshine Law when entering into closed session during meetings.
The Ray County Memorial Hospital is overseen by a five-member board, which has pledged to address the concerns identified in the report. The hospital received an overall performance rating of good. A copy of the complete report is online here.
The audit was conducted as part of Auditor Galloway's Rural Healthcare Audit Initiative, which includes a series of audits of rural acute care hospitals. The goal of the reviews is to identify key factors impacting facility finances, and offer solutions designed to improve business operations and bolster fiscal solvency. Earlier this month an audit was released of the Putnam County Memorial Hospital, which described a multi-million dollar billing scheme carried out by hospital management in partnership with a lab company. An audit of the Pemiscot County Hospital is ongoing.
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