An insurance payment of $205,000 will help compensate Powell Valley Healthcare for its loss due to the alleged embezzlement of nearly $850,000 by former chief executive officer.
Current CEO Bill Patten told the Powell Valley Healthcare board that the organization’s insurance company agreed to pay the maximum $200,000 provided under its policy to compensate for criminal activities. The company also will pay $5,000 for claim handling.
Patten says negotiations over a similar claim are ongoing with the company that insures the Powell Hospital District separately.
He tells the Powell Tribune that the insurance payments are just one part of our overall efforts to recoup its losses.
Former CEO Paul Cardwell has been accused of authorizing about $848,000 in false billings to the hospital.
He has denied the allegations.