Ohio AG investigating business practices of nonprofit safety net hospital
The Ohio attorney general’s office is investigating a nonprofit safety net hospital over concerns corruption played a role in its recent financial struggles. A lawsuit has been filed to force the organization to turn over its records and cooperate with investigators, the Cleveland Plain Dealer revealed in a new report.
The lawsuit filed Wednesday against Northeast Ohio Neighborhood Health Services (NEON) comes after a tipster made a complaint about its business practices. After a probe, authorities are now asking a court to levy fines if the health system refuses to be transparent.
The Plain Dealer, citing the court filing, said prosecutors have questions about the role leadership at NEON may have had in it owing more than $12 million to creditors—who have filed their own claim, seeking to recoup losses.
As reporters point out, the health system has been defrauded before—namely when one of its clinics was destroyed by a fire, only to have Cleveland City Councilman Basheer Jones and a developer siphon funds.
In April, Jones was sentenced to two years in prison after he pleaded guilty to multiple federal charges of wire fraud.
The state attorney general cited the incident in its court filing, arguing that past corruption, combined with “reports of financial distress more than amply show reasonable cause to investigate the governance and finances of the charitable trust [that governs NEON].”
No charges have been filed against anyone at the organization at this time.
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Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.