Nebraska Hospital CEO Resigns Over $38K in Improper Charges

Jared Chaffin, who served as both CEO and CFO of Warren Memorial Hospital in Friend, Nebraska, has resigned amid allegations that he charged more than $38,000 in improper expenses to hospital credit cards, according to Becker's Hospital Review.

Nebraska State Auditor Mike Foley detailed the findings in an Aug. 18 letter to the mayor of Friend and the hospital's board. The case highlights a recurring risk at small, rural, publicly funded hospitals: thin staffing that concentrates financial authority in one person. When a single executive holds both the CEO and CFO titles, the checks that normally catch questionable spending can disappear.

For hospital boards, the practical lesson is straightforward. Separate spending authority from oversight, require independent review of executive expenses, and set clear credit card policies. State auditors are increasingly willing to scrutinize how public hospital dollars are spent, and small facilities are not exempt from that attention.