Local hospital in turmoil as employees wait for paychecks - KXXV-TV News Channel 25 - Central Texas News and Weather for Waco, Temple, Killeen |


Local hospital in turmoil as employees wait for paychecks


A cloud of financial uncertainty surrounds the Lake Whitney Medical Center. In the past three weeks, management has changed twice and employees don't know who will be paying them next, and how much they'll be getting.    

The uncertainty started on April 11th when a federal grand jury indicted 61-year-old Tariq Mahmood and charged him with seven counts of health care fraud. Mahmood owns and operates six hospitals in the state including the Lake Whitney Medical Center.        

As authorities conducted an investigation of Mahmood and his hospitals, new management took over in Whitney the second week of July. The transition took place in the middle of a two week pay period.    

Employees were paid by Mahmood for one of those two weeks of work, but not vacation and overtime pay they accrued. A memo last week promised another check from new management by Monday or Tuesday of this week to catch up on payroll, but last Friday Chief of Staff and Emergency Room Medical Director Aman A. Shah resigned from his position.    

Employees told News Channel 25 that Shah was a part of that second management team.      

The check employees expected Monday or Tuesday didn't come, and was delayed until this coming Friday, they were told.       

Phillis January, who is the director of nurses at Lake Whitney Medical Center and the de facto person in charge, said at this time the hospital doesn't know and could not comment on who will manage the facility next.      

Employees say they don't know who's paying them next, and how much they're getting. They're already behind on their bills, and fear things could get worse, before they get better.

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