University Medical Center acting CEO Kathryn Silver answers questions at a news conference Wednesday. Silver was appointed to the post Tuesday after Lacy Thomas was fired amid a police investigation into allegations that he channeled fraudulent contracts to friends in Chicago. Photo by Christine H. Wetzel. Richard Powell Chief financial officer, now on paid leave Marlo Hodges Chief operating officer, now on paid leave

On Tuesday, they appeared before the county leaders as UMC's top executives. Twenty-four hours later, one had been fired and the other two were making arrangements to clean out their offices.

A day after ousting UMC chief Lacy Thomas, Clark County officials sent his top two deputies home on paid leave Wednesday while police investigate allegations that they helped Thomas funnel money to friends in Chicago through fraudulent no-work contracts.

University Medical Center Chief Financial Officer Richard Powell and Chief Operating Officer Marlo Hodges were informed of their removal by Kathryn Silver in her first full day at the helm of the public hospital.

Silver said that while the two executives had not been criminally charged, she decided it would be inappropriate for Powell and Hodges to remain at the hospital while under police scrutiny. County Manager Virginia Valentine backed her decision.

"It's merely allegations against them, but this is more about the public perception of the hospital," said Silver, a longtime UMC executive elevated to acting CEO on Tuesday following Thomas' dismissal.

"It's going to take some time to restore the faith of taxpayers in this hospital."

Silver told Powell and Hodges, who until this week ranked above her in the hospital's hierarchy, on Wednesday morning that they could pick up personal effects from their offices. She then made arrangements for them "to turn in their badges, cell phones and keys."

Valentine fired three-year CEO Thomas on Tuesday after outside auditors revealed that the public hospital lost $34.3 million in its last fiscal year, or $15.5 million more than Thomas reported to county leaders in November.

He learned of his dismissal only hours after Las Vegas police raided UMC to search his office, as well as those of Powell and Hodges. Police said they were looking for evidence of theft and fraud.

Sources indicated that Powell and Hodges also were headed for the chopping block, possibly as soon as this weekend.

Assistant Sheriff Mike McClary said police confiscated dozens of boxes of documents, but the real challenge lies with detectives of cyber crimes who are examining hard drives seized from executives' offices.

Police copied or confiscated several terabytes of information. A terabyte is a measure of computer storage capacity equal to 1,024 gigabytes, or about 100 times the size of the average home computer's hard drive space. Eight Las Vegas police detectives are examining the evidence.

"From this amount of information, we won't even know what we're wrapping our arms around for a week," McClary said.

Valentine said the police investigation did not prompt her to fire Thomas. She said she ended his tenure because he repeatedly misled or withheld information from county officials about the fiscal health of the hospital, which has hemorrhaged about $50 million during the past two years.

Police stated in an affidavit filed to obtain a search warrant that they were seeking documents showing Thomas "used his position to allow several close personal friends and their businesses to benefit financially."

The lengthy police affidavit alleges that Thomas, a Chicago State University graduate and former director of John H. Stroger Jr. Hospital of Cook County, dodged oversight measures to steer lucrative hospital contracts to college fraternity brothers, friends and former colleagues in Chicago.

But police detectives said it appeared the hospital never received any work from the companies in return for paying them anywhere from $22,000 to $670,000.

Two UMC administrators who resigned a year ago, former Chief Operating Officer Blaine Claypool and former Chief Financial Officer Mike Walsh, gave police much of the information that was used to begin the investigation in November. Both say they resigned because of Thomas' alleged misconduct with public money.

Silver said she and top staffers soon will begin reviewing each of the contracts in question to determine whether UMC received work from the companies that were paid.

Silver, who formerly served as the hospital's associate administrator of managed care, business development and planning, said her priority is maintaining morale within the hospital.

She sent a reassuring e-mail to UMC staffers Wednesday morning, asking that they focus on the hospital's primary mission of providing top-notch health care.

But Silver also made clear that she understands she must improve UMC's image outside the hospital's walls by being open with the public about its fiscal health.

"UMC is going to enjoy full transparency under my watch," she said.

She and county Chief Financial Officer George Stevens, whom Valentine has appointed head administrative officer at UMC, are tasked with reported back to commissioners in February with a financial plan for the hospital.