Miller quits post at hospital in Florida
By JOY BLACKBURN and TIM FIELDS
Thursday, July 31st 2008
Schneider Regional Medical Center's former chief executive officer Rodney Miller Sr. on Wednesday abruptly resigned his position as administrator at Memorial Regional Hospital in Hollywood, Fla.
Marla Oxenhandler, a spokeswoman for Memorial Healthcare System, confirmed Wednesday night that Miller had resigned, citing personal reasons. She said she had no other details on his departure.
The Daily News attempts to reach Miller on Wednesday night at his home were unsuccessful. Attempts to reach Frank Sacco, Memorial Healthcare System president and chief executive officer, also were unsuccessful.
Miller's resignation comes two days after The Daily News exposed his criminal history - he was court-martialed for multiple counts of theft and received a bad conduct discharge from the Navy, a fact Miller lied about on his V.I. government job application.
The 16-page special investigative report revealed that the hospital governing board gave Miller the highest compensation package of any public official in the history of the Virgin Islands - even though the hospital was operating at a deficit and was unable to pay its bills for chemotherapy and radiation services at the Charlotte Kimelman Cancer Institute. Some cancer patients missed treatments or received treatments on an irregular schedule because the unpaid suppliers cut off service and deliveries.
On Tuesday, territorial and federal inspectors general released a blistering audit detailing how Miller and other hospital executives mismanaged funds for their own personal gain - and how the hospital board allowed them to do it.
The audit has prompted a criminal investigation.
Miller was chief executive officer at Schneider Hospital from May 2002 until November 2007, when he left to take the job in Florida.
According to the audit, between 2002 and 2007, Miller was paid $3.8 million under three employment contracts loaded with questionable perks - and $1.3 million of that amount was above the amount his contracts allowed.
The board twice ignored warnings by consultants it had hired to review Miller's compensation and instead awarded him more than the recommended amounts, the audit stated.
In the last six months before Miller resigned from Schneider Hospital, he had chief financial officer Peter Najawicz transfer $1.86 million to Miller's personal bank accounts, on the OK of board chairwoman June Adams, the audit found.
In one five-day period alone, Miller had $966,456 of hospital funds transferred to his account:
- $250,000 on May 21, 2007.
- $250,000 on May 24, 2007.
- $466,456 on May 25, 2007.
Investigators wrote that the Irrevocable Rabbi Trust perk in Miller's 2005 and 2007 contracts was "particularly questionable."
A Rabbi Trust is an employer-funded tax-deferred compensation plan. The money goes to an independent third-party - such as a bank or trust company - for the later benefit of the executive, according to the audit.
Investigators found, however, that the board did not set up a Rabbi Trust. Instead, payments of almost $1.47 million - authorized by the board - were deposited directly into Miller's personal accounts.
- Contact Joy Blackburn at
774-8772, ext. 303 or e-mail
blackburn@dailynews.vi; contact
Tim Fields at 774-8772, ext. 364 or
e-mail tfields@dailynews.vi.