'Deeply concerning': Reaction to the fraud investigation at LHSC

Fraud investigation at LHSC As CTV London's Gerry Dewan reports, the hospital's past financial practices are going under a criminal microscope.

The London Health Sciences Centre’s (LHSC) past financial practices are going under a criminal microscope.

Details about the nature of the police investigation haven't been released, but London West NDP MPP Peggy Sattler said word of the investigation looking into LHSC finances is troubling.

“I don't think this happens very often. That the police would be investigating a hospital for fraud, so that is deeply, deeply concerning,” said Sattler.

“I, like other Londoners today, woke up to a Halloween scary story coming out of London Health Sciences again,” said Peter Bergmanis, head of the London Health Coalition

Bergmanis was named a member of the recently formed LHSC community advisory committee and is anxious to see the hospital group on a better path.

In recent months, Windsor Regional Hospital Chief Executive Officer David Musyj has been appointed supervisor of LHSC by the Ministry of Health.

“As far as the supervisor is concerned, he's trying to bring back some sort of financial accountability and stability. This is obviously part of that agenda,” said Bergmanis.

After Musyj's appointment, all members of the LHSC's Board of Directors resigned their positions.

More than 100 leadership team members have been terminated, re-assigned, or have resigned, as LHSC faced a $150-million deficit.

“I feel very badly for the employees of London Health Sciences Center because they do exemplary work in very, very, stressful circumstances. They need stability. Our community needs stability. And we need a hospital that we can rely on to provide the services that Londoners need,” said Sattler.

LHSC officials put out a statement late Wednesday afternoon, saying they were aware of the police investigation, but also stating that they wouldn't be commenting further.

Musyj was named interim chief executive officer when previous CEO Jackie Schliefer Taylor went on a medical leave.

Schliefer Taylor was named CEO in 2021 but became subject of a Health Ministry investigation after reports that $470,000 was spent on executive travel.

Schliefer Taylor took her leave in 2023 and formally left her position in June.

Sattler said the emphasis has to be put back on effective delivery of care.

“We know that hospital budgets are already stretched to the limit. You know, hospital ERs are seeing increasing numbers of people who don't have any other options because they don't have a family physician,” said Sattler.

LHSC has more than 15,000 employees with an annual budget of $1.5 billion.