ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, February 19, 1993                   TAG: 9302190162
SECTION: VIRGINIA                    PAGE: B3   EDITION: STATE 
SOURCE: PAUL DELLINGER SOUTHWEST BUREAU
DATELINE: MARION                                LENGTH: Medium


EX-HOSPITAL CHIEF FACES INDICTMENTS

A Smyth County grand jury has indicted a former hospital administrator on charges that he embezzled or fraudulently used an undisclosed amount of money from late 1981 to early 1991.

The indictments against Deane Beamer, 58, of Marion, were sought by Commonwealth's Attorney Roy Evans Jr. after a special grand jury spent five months investigating the workings of Smyth County Community Hospital.

Among other things in its report last month, it said Beamer collected $38,144 over 10 years in unused vacation overpayments because he accrued more annual vacation days than he was allowed. He reimbursed the hospital for that amount last year.

Beamer was the hospital's first administrator, and served in that post for 29 years before his resignation a year ago.

Two circuit judges ordered a grand jury investigation into the hospital operations in August, following concerns expressed by several sources. The hospital board already had hired a Richmond law firm, Hunton and Williams, to look into hospital operations.

"The special grand jury has had the full cooperation of the hospital's board and administrative staff. The entire report has been shared with the community, which should reassure the community that their community hospital is an open book and is operating `in the sunshine,' " said Roger Cooper, who succeeded Beamer as the hospital's executive director.

The hospital "has already addressed and corrected a majority of the special grand jury's concerns and is currently addressing others. Many months ago the board of directors was downsized to 19 from 42. The board's bylaws were revised. A new, active board committee structure was developed to facilitate board and medical staff involvement and oversight of hospital activities. More recently, a new paid annual leave policy was developed," he said.

A board and management conflict-of-interest policy has been developed and signed by all board and management team members, Cooper said. A proposed new employee code of conduct will be presented to the board Monday for approval.



by Archana Subramaniam by CNB