St. Charles Health System no longer seeking repayment after claim that some employees were overpaid

By Alex Hasenstab (OPB)
Aug. 29, 2022 11:47 p.m.

A central Oregon Health system will no longer seek repayment from employees who may have been overpaid because of a payroll issue.

Earlier this month, St. Charles Health system said it had overpaid at least 2,000 employees an average of $780, totaling $2 million in overpaid wages.

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This happened after hackers attacked the company that runs the hospital’s payroll account.

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Ultimate Kronos Group, the technology company that runs St. Charles’ payroll system, fell victim to a ransomware attack that left many businesses across the U.S. who use the system reeling and unable to access payroll records.

From late November until January, the hospital paid employees based on hours they reported during that time, a spokesperson said earlier this month.

When St. Charles determined they had overpaid some employees, they originally asked employees to pay back the money.

This received criticism from the Oregon Nurses Association, which said the hospital had no documentation to prove its claims that employees had been overpaid.

According to the Bend Bulletin, Dr. Steve Gordon, interim president and CEO of St. Charles, said in a statement that the health system will seek damages from the payroll company.

Gordon also encourages employees to donate some of the overpaid money to a caregiver assistance fund of the St. Charles Foundation.

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