Probe's focus is payroll staff

November 07, 2006  Jersey Journal

The state attorney general is involved in an investigation of whether staff in St. Mary Hospital's payroll department were involved in stealing hundreds of thousands of dollars over an unspecified time period, according to sources familiar with the investigation.

Events started as an internal investigation by the owner, Bon Secours Health System Inc., who then notified law enforcement officials of their concerns, sources told this newspaper.

Early unconfirmed reports said that the misappropriated money could total between $200,000 and $1.25 million.

The hospital nearly closed its doors after recording millions of dollars in losses over the past several years, and the city is now negotiating to take it over.

Hospital spokeswoman Joan Quigley told the Journal that the hospital has insurance that will protect it from any liability attributed to the loss of money.