Lacy Thomas was fired as chief executive officer of Clark County, Nev.-owned University Medical Center, Las Vegas, after an external audit firm revealed hospital financial losses were more than $34 million, nearly twice what Thomas had previously disclosed. Las Vegas police also divulged a criminal investigation of Thomas, two other UMC senior executives and several outsourcing vendors, including Affiliated Computer Services, Dallas. Las Vegas Metropolitan Police presented an affidavit to county commissioners at board meeting with a search warrant seeking records of Thomas, Chief Financial Officer Richard Powell and ACS, along with other consulting firms allegedly doing business with UMC for no-bid contracts.
According to the affidavit, Thomas allegedly awarded professional service contracts to friends who did not complete the work assigned. At deadline, phone calls to Thomass residence and ACS were not returned. Thomas former employer, John Stroger Cook County Hospital, Chicago, halted contract talks underway with ACS because of the inquiry. ACS spokesman Kevin Lightfoot said the company has a valid contract with UMC and has delivered the services under that contract. "The allegations that the contract or any other actions by ACS were inappropriate are untrue," Lightfoot said, while acknowledging that ACS is investigating the matter. Lightfoot also denied that Thomas was a guest of ACS when he traveled to St. Thomas in the Virgin Islands, allegedly to view demonstrations of ACS revenue-cycle services in use.
Clark County commissioners named Kathy Silver acting CEO of UMC. Silver was the hospitals associate manager of managed care, business development and planning. The county also named George Stevens, Clark Countys chief financial officer, as the hospitals acting CFO to replace Powell, who along with Chief Operating Officer Marlo Hodges, is on paid administrative leave. Powell and Hodges are also named in the affidavit as being investigated. -- by Mark Taylor