Shock, questions as police launch fraud probe at embattled London hospital

Article content

The announcement by London Health Sciences Centre that city police have launched a fraud investigation into the embattled hospital has stunned observers and prompted calls for continued transparency by LHSC officials.

Amid a $150-million budget deficit, a purge of senior executives and the fallout of a travel scandal, hospital officials announced Wednesday that police are now investigating “past financial practices” – marking a dramatic new level of concern from one health-care advocate.

Article content

“I’m totally shocked. This came as a surprise to all of us,” said Peter Bergmanis, head of the London Health Coalition.

“Transparency is fundamental to the governance of our hospital. People want to be sure tax dollars are spent wisely. If a criminal element was involved, then police absolutely must root it out.”

It’s notable that hospital officials announced police were now investigating. But key details – what exactly prompted the probe, and where it’s focused in the billion-dollar organization – remain unclear.

Bergmanis, though, wonders whether the sudden growth in the number of senior executives in recent years may have created conditions ripe for questionable financial practices.

LHSC: A timeline of tumult in the top ranks from 2019 to 2024

Earlier this year, the hospital had  22 senior executives, including presidents for each of its three campuses. David Musyj, LHSC’s provincially appointed supervisor, arrived in May and since then has terminated 59 managers and demoted 71 others with pay cuts. More cuts may loom to tame the budget shortfall.

“The number of top executives mushroomed” in recent years, Bergmanis said. “It was spiralling out of control.” 

Article content

Article content

One hospital official spoke with The Free Press on condition of anonymity, given the sensitive nature of the police probe. They agreed with that perspective.

“I think there were a lot of opportunities. Things expanded so quickly and so many people came in it was impossible to oversee what everyone was doing, especially with money,” the official said. 

It was one year ago, November 2023, when Ontario’s health ministry launched an investigation into LHSC spending after The Free Press reported international trips were taken by hospital executives totalling nearly $500,000.

Musyj, seconded from Windsor Regional Hospital, was named LHSC president in May and appointed its supervisor on Sept. 25. He reports directly to Queen’s Park. That same day, LHSC announced that its board members had voluntarily stepped down from their posts “in acknowledgement of the need for a fresh path for LHSC under new leadership.”

Musyj replaced Jackie Schleifer Taylor, who had been chief executive since 2021. Schleifer Taylor went on a medical leave of absence in November 2023, and the hospital announced on June 11 she was no longer employed at LHSC. 

Article content

In a message sent to hospital staff Wednesday, Musyj wrote of the police probe: “I understand that this is a little vague and you likely have questions, but as this is an ongoing investigation, I will not be sharing further information until it’s appropriate to do so.”

For Bergmanis, transparency will be key for taxpayers. He also wants “checks and balances” put in place to ensure there are no further issues.

“We can’t afford to lose patient-care dollars to malfeasance,” he said.

ndebono@postmedia.com

Article content