Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, January 23, 1993 TAG: 9301230080
SECTION: VIRGINIA PAGE: A3 EDITION: NEW RIVER VALLEY
SOURCE: PAUL DELLINGER STAFF WRITER
DATELINE: MARION LENGTH: Medium
HOSPITAL GRAND JURY URGES CHARGE
A special grand jury investigating Smyth County Community Hospital has recommended that its former administrator be charged with embezzlement.The grand jury alleged in a report made public Thursday that Deane E. Beamer collected $38,144 between 1981 and 1991 in overpayments for unused vacation because he accrued five more vacation days each year than he was allowed.
The report says the jurors were told that Beamer was unaware that he was accruing 30 vacation days a year when only 25 were authorized until it was pointed out by Hunton & Williams, a Richmond law firm authorized by the hospital board to investigate possible irregularities at the hospital.
But the jurors found it "incredible" that Beamer was unaware that he was accruing vacation days, because he allegedly had his vacation allowance in his personnel records corrected before the law firm's investigation began.
"We also received evidence that Mr. Beamer directed his secretary to change the reporting of days taken for vacation in 1986," the report says. "Evidence indicates Mr. Beamer's secretary had reported on his personnel card that he was on vacation and she was later instructed to amend the personnel card to reflect he worked during this period and was not on vacation."
The grand jury did not indict Beamer. But it recommended that another grand jury consider an indictment based on these findings.
Beamer did not return two messages left on his home telephone answering machine on Friday.
The grand jury also alleged that Beamer filed inappropriate expense accounts and was a secret partner in some transactions involving hospital property. It recommended no legal action in those instances, but said that would not keep the hospital from seeking lost funds through civil action.
The jury also found that the good working relationship between Beamer and former board president Henderson Graham deteriorated into a power struggle that hampered hospital operations.
Circuit Judges Charles H. Smith Jr. and Charles B. Flannagan II ordered the grand jury investigation last Aug. 4. The grand jury met 34 times and interviewed more than 100 people before filing its report in the county clerk's office shortly before closing time Thursday.
Beamer was the hospital's administrator for 29 years, hired even before construction was completed in 1967.
He resigned in mid-1991 but returned shortly afterward. He left again Feb. 20, 1992, after a closed hospital board meeting to discuss the report from Hunton & Williams.
The grand jury found that the previous hospital board was largely out of touch with hospital operations. "We feel the present board of directors is dedicated and firmly committed to correcting past mistakes and to involving the community in the operation of the hospital," it said.
After the Hunton & Williams study, the hospital board reduced its membership from 42 to 19, revised its bylaws, developed a new committee structure and working on a new paid annual-leave policy.
The grand jury said it found that few board members knew much about hospital operations "and few were aware of the escalating power struggle between Henderson Graham, the president, and Deane Beamer, the executive director, prior to Beamer's resignation."
Graham, a retired dentist, was one of those instrumental in establishing the hospital but the grand jury suggested he voluntarily sever any ties he has with it now.
"Although this recommendation may appear to be harsh, the hospital is attempting to re-establish its credibility within the community and the confidential testimony we received led us to the conclusion that Dr. Graham's continued involvement, in any capacity, would impede the hospital's progress," the report said.
The grand jury said other rumors it investigated regarding Beamer and his financial relationship with the hospital proved untrue.