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Investigation into LCCH Administrators 2/2/2012
A pair of former Lake Chelan Community Hospital Administrators were recently fired from a drug and alcohol center in Oregon.
The treatment center, Astoria Pointe, is a men-only facility with a sister facility for women, The Rosebriar.
Larry Peterson began his tenure with Astoria Pointe as Chief Executive Officer in 2007, and hired Milt Parham as Chief Operations Officer the following year.
Both men were fired from the facility in November and an investigation was launched into the allegations that lead to their dismissal.
Before their employment with that OregonDrug & AlcoholCenter, both men worked at Lake ChelanCommunityHospital. Peterson served as Chief Executive Officer and Parham as the Director of Business Development. They resigned within 6 months of each other after an investigative report into the pair exposed accusations from a significant number of people.
In the report, compiled by Attorney Susan Troppmann who was retained by the hospital to investigate various concerns surrounding Peterson, concerns were grouped into four general categories: potential misuse of public funds (which encompassed the appointment of friends and associates to positions of authority without proper regard to their qualifications, sexually inappropriate conduct, management and leadership issues (including retaliatory conduct), and quality assurance issues.  
The report, dated June of 2007, went on to say that although some of the concerns may no longer be current, other concerns are at least potentially valid.
Allegations listed in the report were primarily directed towards Peterson and included accusations of verbal and physical sexual misconduct, misuse of hospital computers to transmit and view sexual materials, providing inconsistent information about educational background, withholding negative information such as complaints from dissatisfied patients, failing to fully inform and intentionally withholding information from the board, shredding documents after being questioned, forcing employees to resign by humiliating and discrediting them and having an inappropriate business relationship with a board member.
In addition it alleges that Parham authorized discounts without documentation or explanation to a large number of patients totaling $327,000 over five months.
Despite the allegations, both men were given outstanding job reviews after the report was completed.
KOZI will continue to gather and confirm information, and keep you informed on this case.