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‘Greed and corruption' plaguing troubled London, Ont. hospital, ex-doctor claims
‘Greed and corruption' plaguing troubled London, Ont. hospital, ex-doctor claims

Global News

time5 days ago

  • Health
  • Global News

‘Greed and corruption' plaguing troubled London, Ont. hospital, ex-doctor claims

A former doctor is speaking out about financial mismanagement at London Health Sciences Centre (LHSC), saying it's the patients and health-care workers who will suffer. 'It was a shock, and this whole uncertainty about where we stand has created a lack of trust between the front line workers and administrative leaders,' Dr. Ian Chin-Yee told Global News. Chin-Yee, 65, the former program head of laboratory medicine and blood transfusion laboratories at the hospital network, retired in January. He spent 35 years of his career working for LHSC, 20 of which in leadership positions, and says the recent allegations of fraud and financial mismanagement have evoked unexpecting emotions of his time as a front line physician and health care leader 'working to improve a system in urgent need of repair.' 'Learning of the egregious allegations triggered feelings of anger and betrayal by my hospital,' he says in a letter written in response to the recent news. Story continues below advertisement Chin-Yee says he worked alongside many dedicated health care professionals, all focused on delivering the best care the system could provide. 'We struggled to deliver and improve care within a system that is financially strained and often inefficient. We were aware of promising new technologies, tests, and therapies becoming available for our patients but whose access was often limited by lack of human resources, hospital space, and money,' he says. Last week, officials at LHSC revealed that an audit of the hospital network's finances had revealed nearly in $60 million alleged fraud involving several former executives and board members. The hospital network has now filed two lawsuits, which implicated five former executive team members, a contractor, and several companies that were contracted to do work. Get weekly health news Receive the latest medical news and health information delivered to you every Sunday. Sign up for weekly health newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'The Fraudulent Scheme was a calculated, multi-year campaign of deceit and theft, deliberately engineered to misappropriate public funds for personal and unlawful gain,' the lawsuit alleges. None of these allegations have been proven in court, but the financial fraud is under investigation by London police. The hospital network's financial mismanagement has been in the spotlight for quite some time, with a projected operating deficit of $150-million operating deficit expected for 2025. But as new details start to emerge, Chin-Yee says it's frustrating and makes him angry, learning more about why teams he worked to build were cut due to the financial situation at the hospital. Story continues below advertisement He says his specific focus at the hospital was reducing unnecessary tests to introduce new tests that are more detailed and help improve patient outcomes and save the hospital money overall. 'Over five years the cost savings added up and we were proud to have saved our hospital over a million dollars. But these savings pale in comparison to the $60 million alleged fraud occurring at LHSC over the past several years,' he says. 'Yes, I am angry when the very leaders who applauded our Choosing Wisely efforts turned a blind eye to this alleged criminal activity.' He says the repercussions of the gross mismanagement of hospital funds will ultimately lead to patients and front line workers suffering the consequences. 'We are told to tighten our belts and be 'fiscally responsible' — as if we had caused the problem, when in fact, it was greed and corruption at the top,' he remarked. The former LHSC doctor says despite dire need, hiring was halted, departments were dismantled, existing jobs were cut, and funding for new technology was frozen leading to talented leaders were driven out. He says in an effort to make things 'more efficient,' physicians and allied health professionals are now even more overworked, including his own former department who experienced staffing cuts while already struggling to meet demand. Story continues below advertisement London Health Sciences Centre is one of the largest hospital networks in the province, a hub where many smaller hospitals throughout the Southwestern Ontario send patients to for specialist care. Chin-Yee says his department would have samples flown in form other parts of the province for specialized screening that can only be done at a few places. 'The lack of human resources, I'm talking doctors, laboratory technologists, all of these things for doing this testing leads to delayed turnaround times in terms of sample results. We already struggle to meet the needed turnaround time to get the results of a biopsy so the patient can have the appropriate treatment,' he warns. 'The impact — burning out and quickly losing morale. These disruptions threaten to snuff out the embers of innovation that keep our institution moving forward,' he says. Chin-Yee is hopeful that LHSC will enter a period of stability and working to rebuild trust, but says health care changes so quickly so it needs to happen now. 'You can't wait two or three years for stability; by then we will have fallen behind further and… these setbacks have wasted a lot time and energy, and it's urgent that administration starts working with the medical leadership so that we can make sure that patients don't suffer.'

London hospital uncovers $60M in alleged financial fraud
London hospital uncovers $60M in alleged financial fraud

Global News

time10-07-2025

  • Business
  • Global News

London hospital uncovers $60M in alleged financial fraud

Officials at London Health Sciences Centre say a forensic audit of the hospital network's finances by an external third party has uncovered an estimated $60 million in fraud. In an update Wednesday, hospital supervisor David Musyj says through an investigation they identified fraudulent activity between 2013 and 2024, and alleges previous members of the executive team knew about the practices and failed to act. The hospital network has now filed two lawsuits totalling $60 million, which implicated five former executive team members, a contractor, and several companies that were contracted to do work. 'The Fraudulent Scheme was a calculated, multi-year campaign of deceit and theft, deliberately engineered to misappropriate public funds for personal and unlawful gain,' the lawsuit alleges. The lawsuit alleges that those involved submitted fraudulent documents to LHSC as part of a bidding and payment process and failed to declare a material conflict of interest. It goes on to say that those involved then awarded contracts to parties despite conflicts of interest and submitted inflated invoices for work that was never performed. Story continues below advertisement The lawsuit also points to three of the people involved owning at least 76 suspicious properties holding total over $28 million in value purchased during the period the alleged fraud occurred. Get weekly health news Receive the latest medical news and health information delivered to you every Sunday. Sign up for weekly health newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy A statement of claim has been filed against Dipesh Patel, the previous vice-president of Facilities, Derek Lall, Paresh Soni, Nilesh Modi, Varsha Patel, and several named companies in the amount of $50 million. Additionally, a second statement of claim has been filed against the hospital networks previous president and CEO, Dr. Jackie Schleifer Taylor, Bradley Campbell the former corporate hospital administrative executive, and Abhi Mukherjee, the previous corporate services executive/CFO, as well as the consultancy firm Corpus Sanchez International Consultancy Inc., for breach of fiduciary duties. The hospital says Mukherjee, Schleifer Taylor and Campbell are no longer with the organization and were paid according to their employment contracts and legal agreements. However, given the alleged findings, it is pursuing repayment in the collective amount of $10 million. The statement of claim alleges that the fraudulent activity was reported to Schleifer Taylor, Campbell and Mukherjee, and they failed to take action in their 'fiduciary duties as executive leaders of the hospital by not informing LHSC's internal auditor, external auditors, and Board of Directors.' Musyj called the alleged frauds a 'deeply disappointing moment.' 'It's not who we are at LHSC and it's not a reflection of our team,' he said. Story continues below advertisement Musyj says the financial audit is ongoing and that all findings have been handed over to the London Police Services as they continue their investigation. London police posted on X in October 2024 that it had initiated a fraud investigation relating to past financial practices at LHSC. At the time, LHSC wrote a post saying the police probe is 'in response to concerns raised by London Health Sciences Centre.' The hospital network's financial mismanagement has been in the spotlight for quite some time, with a projected operating deficit of $150-million operating deficit expected for 2025. In late September, LHSC's entire board of directors resigned following public criticism over the hospital's spending. Musyj, who was appointed supervisor at LHSC in 2024 by the provincial government and acts as interim CEO, says other staff involved in the alleged misconduct are no longer employed at LHSC. None of these allegations have been proven in court. — With files from Global News' Emily Passfield and Aaron D'Andrea

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