Explanation offered for Winneshiek Medical Center Board of Trustees' settlement with Mayo Clinic Health Systems

Winneshiek Medical Center Board of Trustees President Ben Wyatt says the WMC Board did not "write off" $2 million in payments to Mayo Clinic Health Systems through its Management Service Agreement with Mayo.

At this month's WMC Board meeting, Wyatt explained that the board did not have a copy of the Management Services Agreement with Mayo.  A 2009 audit report questioned the payments made by the hospital to Mayo Clinic Health Systems.

Wyatt told the meeting the previous accounting firm used by the hospital did not question the payments.  When the new accounting firm raised questions, the hospital board could not find a copy of the agreement with Mayo.

Because of that, the board agreed to accept a $206,000 rebate from Mayo.  Hospital board members say the hospital "came out on the plus" by accepting the $206,000.  Wyatt says it is inaccurate to say that the hospital board "wrote off" the $412,000 per year in payments to Mayo from 2005 to 2009.

The hospital board is currently negotiating an extension to the contract with Mayo Health Systems.  It is expected the board will ask for a copy of the contract.