Hannah Emberton
On Monday, Southeast Kansas Mental Health Center Trustees voted to suspend SEKMHC Chief Executive Officer Nathan Fawson.
This follows Fawson’s appearance last week at a Kansas House Health and Human Services Committee hearing, where he was questioned on potential conflicts of interest, compliance regarding the purchase and operation of Chanute’s Ashley Clinic, and general finances of the organization.
On Monday, the board voted to suspend Fawson for 90 days with pay, and named current Chief Operations Officer Doug Wright at interim CEO, according to a memo sent to SEKMHC staff from the board.
It states: “The board is committed to ensuring that SEKMHC remains a stable and supportive environment for both our staff and the communities we serve. Dr. Wright has been a vital part of this organization, and his clinical expertise and familiarity with our operations make him the ideal leader to guide us through this transition.”
SEKMHC operates in six counties, including Anderson, Allen, Bourbon, Woodson, Neosho and Linn counties.
Last August, the Neosho County Commission cited the increasingly high salaries for executives as a reason to deny writing a letter of support for the organization.
As was previously reported in the Tribune: The letter of support would have been used for a Health Resources and Services Administration application.
This application would be to become a federally qualified health center lookalike or LAL. According to the Health Resources and Services Administration website, LALs meet all Health Center Program requirements, but they do not receive program funding. The website also states that Congress created LALs so that more people have access to care. These LALs don’t receive federal grant funding, but they are funded through billing to Medicare, Medicaid, and private insurance.
“I do have concerns,” Galemore said. “Salary issues have been a concern.”
Galemore said that the salaries are about 20 times more than the average citizen of Neosho County.
“I cannot write that letter of support,” Galemore said.
Commissioner Gail Klaassen said the commission supports their efforts in other ways, such as tax exemption.
“I appreciate the investment that SEK Mental Health has made in Nesosho County,” Klaassen said. “It’s not that we don’t support your efforts, but it’s just a concern on the executive pay.”
During that meeting, Southeast Kansas Mental Health Center Chief Operations Officer Doug Wright said being able to apply to be a LAL, would allow for increased funding opportunities through Medicare and Medicaid.
“I just think at this time, we’d like to see some changes,” Klaassen said.
In reviewing the most recent and prior year Form 990s, the change in executive salaries and annual revenue has been dramatic since 2020.
According to Form 990 data published by ProPublica, the salary for Fawson alone has increased by over 344% since 2020. The following is a breakdown of revenue and noted compensation from 2020 to the most recent year available, 2024.
In 2020 the total revenue for SEKMHC was $11,763,160; with 64.1% earned through services rendered. Contributions made up 35.1% of the total revenue, with 0.8% coming from investments or other revenue. Net income after expenses was $2,263,625. The only noted compensation was to Fawson, who earned $154,224 in his role as CEO.
In 2021, the total revenue was was $12,857,879; with 61.8% earned through services rendered. Contributions made up 37.8% of the total revenue, with 0.5% coming from investments or other revenue. Net income after expenses was $721,964. Noted compensation includes: Fawson, CEO, $211,653; Clinical Director Doug Wright, $150,536; Chief Financial Officer Job Springer, $133,767; and Courtney Heather McClendon, APRN, $103,368.
In 2022, the total revenue was was $28,038,383; with 70.4% earned through services rendered. Contributions made up 28.9% of the total revenue, with 0.7% coming from investments or other revenue. Net income after expenses was $7,676,261. Noted compensation includes: Fawson, CEO, $386,948; Clinical Director Doug Wright, $260,224; CFO Job Springer, $259,008; Director of Human Resources Holly Jerome, $203,827; and Chief Information Officer Steven Dooley, $196,779.
In 2023, the total revenue was was $37,406,547; with 86.2% earned through services rendered. Contributions made up 13.1% of the total revenue, with 0.7% coming from investments or other revenue. Net income after expenses was -$625,862. Noted compensation includes: Fawson, CEO, $436,133 with other compensation listed as $191,941; COO Doug Wright, $307,181, other, $137,101; CFO Job Springer, $287,173, other, $136,378; Urologist John Robinson, $243,654, other, $136,378; Director of Human Resources Holly Jerome, $227,508, other, $121,106; CIO Steven Dooley, $218,307, other, $93,297; Clinical Director and Certified Community Behavioral Health Clinic Grant Oversight Michelle Hoag, $189,077, other, $87,478; and Pediatrician Greta Sue McFarland, $187,500, other $65,981. This year, the report noted conflict of interest transactions, and the audit reported material weakness and significant deficiency in internal controls.
In 2024, the total revenue was was $66,328,532; with 93.1% earned through services rendered. Contributions made up 6.2% of the total revenue, with 0.8% coming from investments or other revenue. Net income after expenses was $11,560,790. Noted compensation includes: Fawson, CEO, $685,147 with other compensation listed as $203,952; COO Doug Wright, $510,919, other, $159,603; CFO Job Springer, $458,030, other, $158,787; Urologist John Robinson, $524,043, other, $139,104; Director of Human Resources Holly Jerome, $305,807, other, $138,116; Pediatrician Greta Sue McFarland, $402,673, other $129,435; Director of Specialty Care Dr. Charles Van Houden, $348,608, other, $145,101; and Director of Family Medicine Dr. David Guernsey, $308,815, other, $104,523.
Other compensation is not explicitly defined, but can include employer contributions to retirement plans or insurance plans, deferred compensation, taxable fringe benefits, bonuses, severance pay, longevity awards, or reimbursements.
Through review of these 990 forms, many counties pulled their financial support from the organization for 2026. Allen, Anderson and Neosho dropped their contribution to $1. Anderson County previously offered quarterly payments, and halted the last two payments of 2025. Linn County contributed $0 for 2025 and 2026. Woodson County gave $35,000, which is half of what it previously provided. Bourbon County repealed a half-mill levy in place since 1961 which benefited the organization.
It was noted that these salary rates were well above the average income, not just in the operating counties, but nationally. According to current Census data, the medianKansas income is $72,639, and nationally it is $83,730. The median income in Neosho County is $54,894.
SEKMHC is a part of the Southeast Kansas Health cooperative. Other members of this coalition include: Labette Health, Wilson Medical Center, Labette Center for Mental Health Services, and Four County Mental Health Center.
This story is still developing. Any updates will be included in a future edition of this publication.
