The interim CEO of a Detroit federally qualified health center says some of the agency's former leadership and staff "are alleged to have been active participants in malfeasance, mismanagement, gross negligence, fraud and other improprieties committed against our nonprofit organization," the organization said in a statement Wednesday.
"We have severed our relationships with individuals who are alleged to have played a primary or supportive role in suspected criminal activities and other wrongdoing that is currently under investigation," Kimberly Farrow, M.D., interim CEO of Central City Integrated Health Inc., said in a statement to Crain's. Besides operating as a federally qualified health center, the agency also provides housing and senior services.
"Their conduct not only drastically impacted our financial resources and damaged our longstanding reputation, but also affected spending available for the underprivileged consumers whom we proudly serve, including the chronically homeless, veterans and those with mental illness," said Farrow, who had been CCIH's vice president of clinical operations and chief medical officer.
In October, Farrow replaced Ryan Lepper, who had been CEO since 2015. Lepper did not respond to emails and phone messages seeking comment. In its statement, CCIH did not name Lepper or others who also have left the organization and did not provide details on what activity is being investigated.
A spokesman for the agency declined to disclose additional details beyond the statement.
"CCIH has zero tolerance for any criminal activity committed within our organization. When evidence regarding improprieties began to surface within our organization, I, along with key leadership, engaged CCIH's legal counsel, the board of directors, and appropriate local, state and federal agencies," the statement said.
"We are fully cooperating with authorities and support all criminal and civil action that may be taken. This was a shameful breach of public trust and we remain hopeful these investigations will quickly bring responsible parties to justice."
Farrow said in the statement she became interim CEO on Oct. 7. She said her previous job as chief medical officer gave her responsibility for clinical oversight of CCIH's medical and behavioral health service programs. She said she had nothing to do with the agency's financial oversight.
"In my new role, I've incorporated many proactive measures to ensure such activity will not be repeated, including more stringent control of checks and balances," Farrow said in her statement. "I've also retained the assistance of a third-party auditor who is conducting a forensic audit of our finances in order to determine the full extent of the potential malfeasance and financial liabilities."
She said CCIH has begun to take steps to "ensure there is no interruption of services to those in the community who depend on our organization. This includes renegotiating various contracts, right-sizing our workforce, executing short-term financing, and placing real estate holdings for sale."
Farrow said CCIH is now current with its rent payments to landlords and with premiums for insurance policies.
During Lepper's tenure, Crain's reported, CCIH added employees, clients and expanded access for the 5,000 to 6,000 people it serves each year.
Incorporated in 1971 as Detroit Central City Health Center, CCIH now employs more than 100 people and offers services that include physical health, mental health, dental services, vision and obstetrics/gynecology services.
CCIH also offers an array of social services to the homeless by offering temporary housing for veterans and disabled people, literacy training, employment support and transportation.
Lepper, who came from the investment banking industry, projected vigorous growth for CCIH in 2018 and 2019. He told Crain's he expected CCIH to exceed $20 million in annual revenue in 2019 after $17 million in 2018.
CCIH did not specify the current revenue of the agency.
Farrow said CCIH held a town hall meeting last November to hear concerns of its clients. It also now uses an assessment tool based on the U.S. Housing and Urban Development's quality standards.
It holds monthly meetings with the CCIH Consumer Advisory Council and conducts wellness checks to ensure its housing units are adequate.
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January 23, 2020 at 07:04AM
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Federally funded health center's interim CEO alleges 'malfeasance, mismanagement' of former leaders - Crain's Detroit Business
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