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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Former hospital CFO sentenced

The former chief financial officer for two community hospitals in North Idaho was sentenced Tuesday to 10 years in prison for embezzlement and was ordered to repay more than $38,000 on two counts of grand theft.

First District Court Judge Fred Gibler allowed Richard Lee Mikkelson to begin his prison term with a six-month “rider” at a state prison boot camp to determine if Mikkelson is a candidate to serve his sentence on probation. Mikkelson was told to report to the Shoshone County Jail by Friday for transportation to a state prison.

Mikkelson pleaded guilty in June to two counts of grand theft. Originally, he was charged with 12 of the felony grand theft counts and one of petit theft. Mikkelson was accused of stealing $55,493 by double-dipping on his salary.

Mikkelson was chief financial officer for Shoshone Medical Center in Kellogg and for the Benewah Community Hospital in St. Maries. Mikkelson, employed by Quorum Health Services of Plano, Texas, was paid $102,000 as chief financial officer for the Kellogg and St. Maries hospitals.

His paycheck came from Shoshone Medical Center, which billed Benewah Community Hospital for a share. But for at least a year, police and prosecutors believe, Mikkelson not only accepted his check from SMC, but also pocketed direct payments from Benewah Community Hospital.

The double-dipping was discovered in late March, Mikkelson was fired in late April and, soon after, pleaded guilty.

On Tuesday, Gibler was tougher on Mikkelson than a plea agreement reached by Shoshone County Prosecutor Val Siegel and defense attorney John Cossel recommended. The plea agreement called for three months of local jail time as well as full restitution.

As part of the plea agreement, Mikkelson agreed to repay $38,139.57. Some of the money already has been repaid, Siegel said. More is expected from the sale of Mikkelson’s house.