I-TEAM: Internal investigation finds inappropriate spending at Kettering Health, network says

A major healthcare provider in the Miami Valley says they’ve found misuse of funds after an internal investigation into several complaints made about the organization.

In an email sent to Kettering Health employees Tuesday, network CEO Michael Gentry said the organization’s boards and leadership initiated an investigation in the fall of 2021 following a series of complaints made against the healthcare provider earlier that year. The message sent to employees was obtained by the News Center 7 I-Team by several independent sources.

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In March, the organization confirmed that it was aware of the allegations of “inappropriate fiscal and operational management” and asked an outside firm to do an internal investigation into said allegations.

Gentry told employees Tuesday that the investigation had been completed.

“Unfortunately, the investigation found that organizational funds were used for non-business purposes,” he wrote.

Now, the healthcare provider will be “seeking repayment of these funds from multiple individuals and sharing information related to our investigation with the appropriate authorities.”

As the News Center 7 I-Team previously reported, several allegations of abuse of charitable funds were made against former CEO Fred Manchur and former board chairman Dave Weigley.

Gentry noted that the people implicated in the investigation no longer work with the organization. While neither Manchur nor Weigley was mentioned by name, both men have since left the organization. Manchur retired in December 2022 and Weigley is believed to have stepped down from his position earlier this year.

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News Center 7 reached out to Kettering Health for a statement. They referred back to portions of the email sent to employees:

“In the summer of 2021, a series of complaints was made against Kettering Health alleging inappropriate spending inconsistent with our mission as a not-for-profit healthcare provider. With a focus on ensuring integrity, improvement, and accountability, the board and leadership initiated an investigation in the following months after becoming aware of the complaints. This investigation consisted of a comprehensive team that included external legal counsel and forensic accountants.

The investigation has now been completed. The findings of this investigation revealed financial impropriety related to the use of organizational funds for non-business purposes. Kettering Health will be seeking repayment of these funds from the individuals involved and sharing information related to our investigation with the appropriate authorities.

Individuals implicated in the investigation are no longer with the organization. In addition, we have made significant changes to policies, procedures, and governance to ensure this type of behavior will not occur in the future,” the statement read.