St. Mary probe costs 9 their jobs

Thursday, January 11, 2007 Jersey Journal

An internal investigation into a payroll scam at St. Mary Hospital has led to the termination of nine employees and a criminal investigation by the state Attorney General's Office, hospital officials said.

Bon Secours Health System Inc., which is nearing completion of a deal that would hand over the hospital to the city, launched the investigation in October after it feared more than $1 million in fraudulent overtime and bogus bonuses were being dished out in the payroll department.

Officials at the hospital say their investigation - which concluded late last month - showed that more than $700,000 was given out.

The results of the investigation were turned over to the New Jersey Attorney General's Office and the Internal Revenue Service, said hospital spokeswoman Joan Quigley.

In October, a number of Bon Secours security officials stormed the building and secured several computers and changed the locks on several doors. At the time, an undisclosed number of employees were barred from the building.

The deal to transfer ownership of the hospital to a independent entity set up by the city is expected to be finalized later this month, Quigley said.

Officials at the Internal Revenue Service and Attorney General's Office refused to confirm or deny ongoing investigations.