Kettering Health misuse of funds: Key takeaways from our investigation

Aerial view of Kettering Health main campus on Southern Blvd. in Kettering. NICK GRAHAM/STAFF

Credit: Nick Graham

Credit: Nick Graham

Aerial view of Kettering Health main campus on Southern Blvd. in Kettering. NICK GRAHAM/STAFF

In November 2023, Kettering Health told the public that it had conducted an internal investigation in response to “allegations of inappropriate fiscal and operational management at Kettering Health.” The hospital network said it uncovered financial impropriety, but didn’t say how much or name any names. Our reporting reveals the details.

Our investigation: The Dayton Daily News obtained tax documents and other records revealing millions of dollars in improper “excess benefits” provided to dozens of former Kettering Health executives, leaders in the Seventh-day Adventist Church and their family members, identified in an internal audit by the hospital network.

Full story: Read the full story here, including more examples of reported misuse of funds connected to hospital and church officials, and additional response from Kettering Health and the SDA church.

10 key takeaways from our reporting:

1. Benefits: Examples of “excess benefits” include a $12,124 whale watching trip in Maui; costly trips to Paris, Rome and other locations; and personal gifts and home decorations.

2. List toppers: Former Kettering Health CEO Fred Manchur and his wife, Mary Kaye Manchur, topped the list, receiving nearly $1.5 million in benefits, according to tax filings.

3. Full list: The full list is at the bottom of the story by reporter Samantha Wildow and I. Others on it include former and current hospital network leaders and leaders of the Seventh-day Adventist Church.

4. Payback: Kettering Health reported to the IRS that most — but not all — of those who received improper benefits “corrected” the issue. Tax experts tell us this generally involves paying back the money plus a hefty tax penalty. Our story lists those who reportedly haven’t reimbursed the funds.

5. Executive responds: After our story ran, a former Kettering Health president pushed back on the allegations, saying most of the people listed, including himself, didn’t knowingly do anything improper and did everything they could “to respond appropriately and correct any discrepancies that have been noted in the payments.”

6. Whistleblower responds: In response to our reporting, a former whistleblower who went to the Ohio Attorney General’s Office in 2021 to report alleged misuse of hospital funds at Kettering Health says there’s still more to uncover. She urges the Ohio Attorney General to “do something.”

7. Hospital responds: “At the end of 2023, Kettering Health shared that its internal investigation of the matter had been completed, resulting in changes to key personnel, policy, and governance structure,” a hospital statement said.

8. SDA church: Leaders in the Seventh-day Adventist Church named in the 2023 probe include local pastors, state and regional administrators and at least one person linked to the North American Division of the church, which is the division that oversees the territories of the church in Bermuda, Canada, Guam/Micronesia and the U.S.

9. Church responds: “As part of the broader process and in line with findings from Kettering Health’s internal review, individuals affiliated with the Columbia Union Conference who were reported as having received associated benefits repaid those amounts in full,” a statement from the Columbia Union Conference reads.

10. State investigation: The Ohio Attorney General Office is still investigating, according to Kettering Health officials who say they are not in a position to comment further on the “Attorney General’s ongoing investigation,” adding it is separate and independent from Kettering Health’s completed investigation.

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