Administrator at Strained Hospital Owes Employment Tax Penalties

A former administrator of Riverside General Hospital in Texas owes about $174,000 in employment taxes that were withheld but not turned over to the IRS, the Fifth Circuit ruled Wednesday.

Pamela Cashaw was directed to serve as the Houston hospital’s temporary administrator by a federal judge after its chief administrator was indicted for participating in a Medicare fraud scheme. She later resigned, describing the hospital’s environment as “toxic.”

“Cashaw’s testimony at trial establishes that she was aware Riverside was not paying its withholding taxes, and she made the choice to prioritize essential patient services,” a three-judge panel of the ...