Friday, February 8, 2013

Powell hospital settles with management company

Powell Valley Healthcare has settled its lawsuit against a management company over a former hospital CEO charged with bilking the organization of $848,000. The amount of the settlement with HealthTech Management Services hasn't been disclosed. Then-CEO Paul Cardwell was on the payroll of HealthTech, which managed the hospital. Cardwell is charged with funneling $848,000 in hospital funds to a bogus recruiting firm. Prosecutors say Michael Plake of West Lafayette, Ind., who ran the bogus company, was pocketing 25% of the money and giving the rest to Cardwell. Caldwell and Plake were indicted on charges including fraud and conspiracy. Caldwell disappeared in August and is considered a fugitive. Plake pleaded guilty to conspiracy charges and is to be sentenced this month.

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