The dark cloud of corruptions looms over Clark County government once again. This time, it involves a $34 million dollar deficit at the county hospital, which snowballed into a code-blue scandal.
An investigation of financial problems at University Medical Center evolves into a criminal probe.
Police and the district attorney joined the Clark County commission in a growing probe of financial problems at the only county run hospital. Boxes of documents were removed from UMC offices. And the commission learned UMC’s debt is about $34 million, almost twice what was predicted.
The county also removed Chief Executive Officer Lacy Thomas and named Kathy Silver as acting chief executive officer for University Medical Center of Southern Nevada.
The police investigation began in November of 2006 when District Attorney David Roger looked at University Medical Center’s financial audit and concluded something was really fishy.
Eventually, a handful of county officials were informed about it, but it still remained a secret even after subpoenas were served late last week.
The county hospital was abuzz Tuesday morning when Metro detectives arrived with a search warrant for the executive offices. The I-Team got a tip from the hospital and was there with a camera rolling when police hauled out the first big load of seized documents.
The affidavit from Metro lays out the case and law enforcement suspicions. The district attorney and Metro believe that UMC’s financial problems might not be entirely accidental. Hundreds of thousands of dollars worth of contracts were allegedly awarded by UMC Chief Executive Officer Lacy Thomas to at least seven companies, which did little or nothing for the money.
According to the search warrant document, Thomas has personal ties to all of the companies. Some were owned by former fraternity brothers, others by friends. For example, Superior onsulting, also known as ACS, is a Chicago area firm that was paid more than $1 million to help UMC collect its debts even though it collected less than the hospital had the year before it was hired.
Hopefully Thomas and the other UMC execs under investigation aren’t skipping town any time soon…
Long-time Clark County Commissioner Yvonne Atkinson-Gates resigned at the commission meeting Tuesday morning.
Commissioner Atkinson-Gates was hit hard by the State Ethics Commission for her involvement in a concession contract at McCarrran Airport in 1988.
“I beat a lot of odds. People have tried to get rid of me for a long time. I’m still standing and never have to worry about going to jail,” she said.
“I will miss each of you, I will miss my staff, and most of all my constituents and the intense negotiation it sometimes took to get District D where it is today. In spite of the ups and downs, I have truly learned some lessons that will never be forgotten.”
She has served as a commissioner for 14 years.
Her final day will be March 1.
Coincidence? I’m sure all Las Vegans will learn the whole truth soon.
In the meantime, Gov. Jim Gibbons will be tasked with appointing a Democrat to fill the vacant seat for District D. Will it be former state senator Joe Neal?
Update (1/17): Joe Neal doesn’t appear to want the job, but he’s supposedly backing state assemblyman Morse Arberry for the seat. LV city councilman Lawrence Weekly would be the better appointee, should he choose to pursue it.
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