The future of a storied East Side health center remains in question as it continues to fight a lender seeking to take its properties and other assets.
Northeast Ohio Neighborhood Health Services (NEON), which has served patients on Cleveland’s East Side for nearly 60 years, operates six clinics and a mobile health unit. As a federally qualified nonprofit health clinic, it serves patients regardless of insurance status and offers reduced-cost care.
suit last June when it asked a judge to put NEON into a receivership, which would have the power to run the nonprofit’s finances and sell its properties. The two parties negotiated for months before the lender told the judge it wanted foreclosure because NEON was “not even reasonably close” to being able to pay back its debt.
Why the health center is accusing its lender of fraud
NEON’s argument largely centers around complicated…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.