Officials testify at Ken Beverly trial Tuesday
Published 8:00 am Wednesday, December 1, 2010
Archbold Memorial Hospital officials’ testimony was the same Tuesday: The facility is a private, not-for-profit hospital.
Officials testified at the Valdosta U.S. District Court trial of Ken Beverly, retired Archbold Medical Center president and CEO.
Beverly is being tried on a six-count indictment that alleges the defendant conspired for almost four years to falsify records to obtain government funding designated for public hospitals.
“By charter, it’s a private, not-for-profit hospital,” said Rick Singletary, chairman of the Archbold hospital board.
Singletary also serves on the Thomasville Hospital Authority and is a former Thomasville mayor.
He testified that he knew of no actions by the defendant to change the hospital’s private status.
The Hospital Authority, Singletary said, is a “pass-through organization” for issuing tax-exempt hospital bonds.
The Hospital Authority met in 1997, 2003 and a couple of times in 2006, he said, adding that the panel now attempts to meet annually.
“We probably should have met more frequently than we did,” Singletary testified.
The Hospital Authority did not decide which physicians to hire or provide hospital operational or facilities instructions, said Singletary, a prosecution witness.
He told Assistant U.S. Attorney Jim Crane he was not aware of a lease between the Hospital Authority and Archbold.
Singletary said Wesley Simms, M.D., a Thomasville pathologist, filed suit against the Hospital Authority to obtain minutes from a meeting of the agency.
“He did not think we had the right to issue tax-exempt bonds,” Singletary explained.
It was during litigation of the Simms suit that it was learned about fictitious documents.
On cross-examination by defense lawyer Converse Bright, Singletary acknowledged the Hospital Authority has a public liability. Attorneys and William Sellers, now-suspended Archbold chief financial officer, kept Authority minutes, the witness explained.
Sellers has entered a guilty plea in the case and is cooperating with the government. He will testify for the prosecution at the trial.
Singletary told Bright he was made aware that the Hospital Authority owned land on which Archbold was located. Ownership of the property by the Authority was required to show collateral in issuing bonds, Singletary explained.
“I think that’s why it was done that way,” he testified.
Singletary conceded to Bright that a warranty deed to the property gave the Authority considerable assets.
Prosecution witness Clay Campbell, Archbold Health Services president, also said Archbold is a private, not-for-profit facility.
The Hospital Authority is a financing vehicle for Archbold and has no operational control and is not involved in hospital activities, Campbell testified.
On cross-examination by defense counsel Bruce Maloy, Campbell said his father, Clifford Campbell, serves simultaneously on the Hospital Authority and on hospital boards.
Rick Ivey, Archbold vice president of public affairs, also told Crane Archbold is a private, not-for-profit institution, and he knew of no plans to change the status.
Perry Mustian, Archbold Medical Center president and CEO, also said Archbold is private and that the Hospital Authority does not control the facility’s day-to-day operations. Neither does the Hospital Authority own the hospital, Mustian said.
Mustian described Beverly as intelligent, with knowledge of health-care financing. He has a dominant personality and was an involved manager, Mustian added.
Beverly and Sellers worked closely together, Mustian testified, describing Sellers as Beverly’s “right- hand man.”
On cross-examination, Mustian told Bright that four of the five people on the Hospital Authority also serve on Archbold boards.
Bright showed Mustian a warranty deed filed in 2009, conveying Archbold property from the Hospital Authority to the hospital.
Mustian said 10 percent or less of Archbold property was deeded to the Authority.
“That was my understanding from what I heard from others in the organization,” he told Bright.
Jim Story, M.D., Archbold president emeritus and former Archbold president, also said the hospital is a private, not-for-profit factory and does not receive orders from the Hospital Authority.
Story told the assistant U.S. attorney the defendant is very bright and well-educated on hospital issues.
“I’d say he a visionary,” Story testified.
Story’s testimony and that of other prosecution witnesses continues at 8 a.m. today at the Valdosta Federal Building