Two former hospital officials in Manchester were arrested on theft charges over the weekend.
Former Regional Medical Center CEO Lon Butikofer and former System Fund Development Director Mike Briggs were taken into custody on Saturday.
Both Butikofer and Briggs were charged by the Manchester Police Department with First Degree Theft.
In February, the State Auditor’s Office released a report on an investigation into Regional Medical Center. The investigation was requested by officials after concerns surfaced over certain travel reimbursements to Butikofer and Briggs, as well as concerns regarding the use of the hospital’s credit card. The investigation spanned eight years from January 1, 2009 through March 15, 2017.
The concerns surfaced two years ago, with Briggs fired in February 2017 and Butikofer resigning at that time as well.
In the report, State Auditor Rob Sand said the special investigation identified over $256,000 in improper disbursements and $28,000 in unsupported disbursements. The improper disbursements include over $192,000 in improper payroll costs for unrecorded paid leave used by Butikofer and Briggs, over $52,000 in improper disbursements to Butikofer and Briggs and nearly $12,000 in charges to Regional Medical Center’s credit card. Sand reported Butikofer and Briggs were reimbursed for mileage and meal costs for events which were improper or events which representatives of professional organizations reported did not happen on the dates claimed. In addition, Regional Medical Center’s credit card was used for travel costs associated with these events.
You can find a link to the complete 94-page report here: https://www.auditor.iowa.gov/reports/file/56366/embed.
Butikofer and Briggs were each released from the Delaware County Jail on $10,000 unsecured bond on Sunday morning.
photos of Butikofer (pictured above) and Briggs (pictured below) courtesy of Delaware County Sheriff’s Office