Siloam Springs (Ark.) Memorial Hospital won a $425,000 arbitration judgment against its former management firm, QHR, Brentwood, Tenn. The city-owned hospital said it accused QHR, a unit of Triad Hospitals, Plano, Texas, of mismanaging the hospital's operations and finances and providing fraudulent financial information to its elected governing board to obscure a poor operational performance. The three-member arbitration panel agreed with the hospital that QHR mismanaged the facility and committed financial fraud in its reporting to the board, said Penny McClain, the hospital's chief executive officer for the past two years. In a written statement, QHR said neither it nor its employees "did anything unlawful or detrimental to the hospital." The statement noted that the arbitrators dismissed many of the hospital's claims and denied its request for punitive damages. The hospital had sought a total of $4.5 million in damages, McClain said. The arbitrators also said the hospital is entitled to collect reasonable legal fees and has the right to appeal if the ruling on legal fees isn't to its liking, McClain said. The hospital board fired QHR in January 2002, as the hospital headed toward a $2.4 million loss for its fiscal year ended March 31, 2002, McClain said. In the fiscal year ended March 31, 2004, Siloam Springs Memorial earned $600,000, she said. -- by Vince Galloro
Ark. hospital wins arbitration judgment against QHR
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