Physician-owned Kansas hospital accuses former CFO, COO of stealing millions

Kansas Heart Hospital, a Wichita-based specialty hospital partially owned by physicians, is accusing its former CFO and COO of diverting funds and pocketing millions before resigning last year, according to a report from KAKE, an ABC affiliate.

Five details:

1. Kansas Heart Hospital filed a lawsuit April 29 against former COO Steve Smith and former CFO Joyce Heismeyer, alleging the two worked with the hospital's president Gregory Duick, MD, to divert millions of dollars between 2015 and 2020 as unauthorized bonuses, deferred compensation and severance benefits.

2. The lawsuit also alleges the executives wired funds to Dr. Duick's investment group based in Pennsylvania and then withdrew $1.7 million for personal use in 2019.

3. Mr. Smith and Ms. Heismeyer are accused of manipulating hospital computer files to set up a large severance before resigning from their positions last August, according to the report.

4. Mr. Smith and Ms. Heismeyer denied the allegations through a statement from their attorney, KAKE reported.

5. Dr. Duick is not named as a defendant in the lawsuit, according to the report.

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