NEW ORLEANS -- The Louisiana Legislative Auditor released a scathing report pointing to possible spending and financial irregularities concerning the Jefferson Community Health Care Centers.
The public clinics supported by the parish and East and West Jefferson Hospitals provide basic medical services to the indigent and uninsured in JP.
According to the audit, clinic records indicate that from July 2006 to July 2009, the clinics loaned 18 employees more than $100,000.
The loans included more than $48,000 for the clinic's chief executive officer Carol Smith and more than $10,000 for the clinic's former chief financial officer Rickey Vaughn.
The audit also shows that Smith and Vaughn made close to $69,000 in personal purchases with clinic funds.
Smith's purchases included a trip to Puerto Vallarta, Mexico, flowers and medical supplies for her mother.
Vaughn's purchases included an Air France ticket and $2000 for design services for a separate company he and Smith owned.
"Our contract was to provide very needed services to the indigent population of our community," said WJMC CEO Nancy Cassagne. "The monies were never intended and our contract certainly did not provide for any spending of funds for trips, parties or any of the other things mentioned in that audit."
"West Jefferson always tries to put back to the community and support foundations like that," said WJMC Board Chairman Dr. Frank DiVincente. "It's just a disappointment."
The West Jeff Board of Directors asked the legislative auditor to look at the clinics, last May.
Cassagne says the fact that the medical center never received a single Medicaid reimbursement check from the clinics in 2007 was a red flag.
"Clearly, with the population of patients who were being seen at the clinic, certainly some of those patients would have been eligible for that Medicaid," said Cassagne.
According to the audit, the clinics over-billed West Jeff $146,000 for patients who were eligible for Medicaid. The clinic was supposed to repay the hospital, $140,000 per patient visit, if the patient qualified for government assistance.
The Jefferson Community Health Care Centers sent West Jefferson a check for more than $145,000, dated Monday, to cover the costs of the improperly billed patients. The hospital has since severed its ties with the clinic.
The JCHCC declined requests for comment on the report.
According to the clinic's response in the audit, the company fired its CFO and implemented a new fund-based accounting system.
CEO Carol Smith is currently repaying her loan and money she used for personal expenses.
The clinics took legal action against Ricky Vaughn to recover $3,000 he owed when he left the company.
A copy of the audit report was sent to the Jefferson District Attorneys Office.
