The Herald Bulletin

Afternoon Update


March 1, 2014

Ken de la Bastide: Health Center board discussed removing Malone as director

The board of directors of the Madison County Community Health Center discussed late last year whether to replace its president and CEO, Anthony J. Malone.

At the time, the Indiana Attorney General’s office and the U.S. Drug Enforcement Administration were investigating the health center for possible Medicaid fraud.

Several former board members indicated this past week there was a special meeting of the board to discuss options for the future of the health center. The former board members requested their names not be used.

Herald Bulletin Editor Scott Underwood, who recently resigned from the health center board, declined to be interviewed for this column and did not provide any information about the board's business or the health center and its employees.

That special board meeting took place after the Indiana State Department of Health’s decision to forego an annual $226,625 grant to the health center for vaccines and also suspending the center from future grants.

The ISDH set seven conditions before a reconsideration of the decision to provide grant funding to the health center. Those conditions included the removal of Malone, former chief medical officer Dr. Frank Campbell and Ariel Sue-Perkins, director of internal operations. Other stipulations: a replacement CEO or interim CEO would need to be approved by the ISDH, no pain medications could be offered, a remediation plan needed to be developed and a consultant would have oversight.

The former board members said although no vote was taken at the meeting, there were discussions about Malone stepping down either through resignation or retirement.

Those board members indicated some members were concerned about the timing in replacing Malone. They said board members that were “friends” of Malone’s wanted him to retain the position.

Last month Dr. Campbell’s medical license was indefinitely suspended by the Indiana State Medical Licensing Board for allowing physician assistants to write prescriptions for controlled drugs using pre-signed prescription pads.

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