A former Conemaugh Health System executive is facing controversy for inflated income reports at the Tennessee-based health system he led after leaving Johnstown.
Wellmont Health System revised its financial statements for 2006 and 2007 this week, after new auditors found accounting issues that overstated net income by $20 million under Dr. Richard Salluzzo’s leadership, the system announced.
The audit was launched after Salluzzo, former chief executive officer at Conemaugh and its flagship Memorial Medical Center, left Wellmont to take the reins of Cape Cod Healthcare Inc. in Hyannis, Mass.
“This brings a challenging chapter in Wellmont’s history to a close,” Mike Snow, Wellmont’s president and CEO, said in a press release. “We are now fully focused on managing our operations and financial performance in this uncertain economy and continuing to deliver superior health care to our patients.”
Salluzzo said the issue is simply “a disagreement between auditors.”
In a statement released Monday, Salluzzo said the amounts listed under “accounts receivable” were interpreted differently. The category includes money the hospital expects to collect from insurance companies, Medicare and other payers. While those amounts are almost always less than the hospital’s official charges, actual payments are often hard to predict.
“It’s more art than science,” one health system leader said.
Wellmont leaders stopped far short of blaming Salluzzo.
“The overstatement occurred because of several issues and errors recording various expenses, receivables and assets,” the hospital announcement said.
“Importantly, the financial review did not identify any theft or personal gain associated with the accounting issues, nor did it indicate any issues with regulatory agencies or payors.”
Instead of $15.2 million in fiscal year 2006, Wellmont earned $2.8 million. The $9.2 million reported in 2007 was restated at $2 million. In 2008, the system lost $4.59 million. Salluzzo came to Wellmont in mid-2005 and left in mid-2008.
Conemaugh had strong financial performance under Salluzzo, board member Robert Gleason Jr. said Tuesday. He was board chairman for much of Salluzzo’s tenure.
“We had a turnaround from a loss,” Gleason said. “I remember no discrepancies.”
Salluzzo led Conemaugh from June 1999 until November 2004. During those five years, total revenues nearly doubled and all four system hospitals’ financial losses were stemmed. He led the charge on plans for Greater Johnstown Tech Park development and the acquisition of crosstown rival UPMC Lee Regional.
Local News
Salluzzo faces accounting questions in Tenn.
- Local News
-
-
Female jail guards to stand trial in alleged inmate trysts
Two suspended female Indiana County jail guards have been ordered to stand trial in connection with alleged sexual assaults involving three female inmates.
-
Highlights of Gov. Corbett's state spending plan
Read on to see a bulleted list of Gov. Tom Corbett’s $27.1 billion state spending plan for the year that starts July 1.
-
Pa. gas drilling fee bill debate ends without vote
Pennsylvania, the only major gas-producing state that does not tax the taking of natural gas from its soil, moved closer Tuesday to imposing a fee on the drilling in the vast Marcellus Shale reserves that have transformed the state in recent years.
-
Blogging with heart
I was feeling overwhelmed yesterday, so today, I’m organizing my work. I have talked to probably a couple dozen people for Heart Month stories and I have pages and pages of notes.
-
$27.1B budget proposed
Gov. Tom Corbett on Tuesday proposed a budget of $27.1 billion, with no tax increases, deep cuts to higher education assistance and a range of cost-cutting in services for the poor, elderly and disabled.
-
Universities face steep cuts
State universities still trying to recover from deep cuts last year would have their public funding slashed even further under a budget plan unveiled Tuesday, leading some institutions to warn of a choice between maintaining buildings and offering academic programs students need to graduate.
-
Plan hurts middle class, local Democrats contend
While members of his own party praised Gov. Tom Corbett’s fiscal restraint, some local Democratic lawmakers said the Republican’s proposed budget panders to corporate interests while inflicting pain on the middle class.
-
Detour hurting some Portage businesses
Craig Mazzarese’s business depends heavily on drive-by customers, but since last week fewer drive-bys have been stopping
-
Local airport funding intact
Airport leaders here are breathing sighs of relief after Congress approved funding to support local commercial air service through 2015.
-
With state revenue tight, Westmont seeks school budget input
The Westmont Hilltop school board on Tuesday night held a public forum at the middle school to explain why the district, already one of the most efficient in the state, must raise taxes each year.
- More Local News Headlines
-
Female jail guards to stand trial in alleged inmate trysts
White House Attacks Romney on Birth Control
Homs Bombardment Continues, Global Outcry Grows
Mo. Teen Gets Life Sentence for Killing Girl, 9
Lower-hassle Screening to Be Tested at Airports
Raw Video: Dog Rescued From Icy Colo. Water
Helmet Camera Captures Calif. Fire Rescue
Worker Tells 911: Powell 'exploded the House'
Triple Win: Santorum Takes Minn., Mo., Colo.
Injured Marine Inspired by Homecoming
No Rape Charges Against Son of NYPD Commissioner
Egypt's Ruling Generals Play Risky Game With US
Former Komen Exec Defends Funding Cut
Skip the Coffee Cup and Inhale Your Caffeine Fix
Calif. Gay Marriage Ban Ruled Unconstitutional
Jury Selection for Ex-UVa Athlete Enters 2nd Day
Cab Driver Helps Wis. Family Escape House Fire
Staff Removed at LA School During Abuse Probe
Runaway Goat Leads Police on Wild Chase
