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Jared Chaffin, CEO and CFO of Warren Memorial Hospital in Friend, Neb., has resigned amid allegations made by the Nebraska auditor of public accounts that he charged more than $38,000 in improper expenses to hospital credit cards.
State Auditor Mike Foley sent a letter Aug. 18 to the mayor of Friend and the hospital’s board alleging Mr. Chaffin incurred hundreds of questionable expenses, according to an Aug. 18 news release from the auditor’s office. The letter alleges the charges included thousands of dollars in golfing expenses in Nebraska and other states, airline ticket upgrades, hotel room service and alcohol charges, streaming subscriptions, and retail and dining purchases.
Mr. Chaffin stepped down after a draft of the letter was sent to the hospital’s five-member board and other city officials for review, according to the release. The auditor’s office said it has provided the letter and supporting evidence to law enforcement agencies and has been informed that Mr. Chaffin is making restitution to the hospital.
The letter also alleges that Mr. Chaffin gave the audit team an inaccurate explanation for opening a second hospital credit card account in his own name.
The hospital board said it authorized an independent review by external auditors after receiving information about potential noncompliance with expense reimbursement and travel policies, then asked for and accepted Mr. Chaffin’s resignation and moved to recover funds, according to a statement shared with Becker’s.
“As a public-owned hospital, we hold ourselves to the highest standards of financial integrity and public trust,” board Chair Jennifer Stutzman said in the statement. “We take full responsibility for ensuring rigorous oversight.”
The board said the review found no issues with broader hospital finances and that it has implemented stronger financial controls. It said Mr. Chaffin has repaid the system for charges identified as improper, and that it disputed some transactions and provided documentation supporting them.
Ron Te Brink, the hospital’s CIO, is serving as interim CEO while the board searches for a permanent successor. Patient care and emergency services are uninterrupted, the board said. No CFO is listed on the hospital’s leadership page.
Becker’s was unable to reach Mr. Chaffin for comment.
Warren Memorial Hospital, founded in 1930 and city owned, became Nebraska’s first rural emergency hospital in 2024. It operates alongside Zimmer Medical Clinic under Friend Community Healthcare System.
The post Nebraska hospital CEO resigns amid allegations of $38K in improper spending appeared first on Becker’s Hospital Review | Healthcare News & Analysis.
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