MANCHESTER, Iowa — Restitution in the criminal case against a former Manchester hospital CEO has been dismissed, as the defendant and the hospital have come to an agreement through other means.
Lonnie D. Butikofer, 63, was sentenced in 2019 in the Iowa District Court of Delaware County to two to five years of probation after pleading guilty to first-degree theft. He had been accused of misappropriating more than $200,000 from Regional Medical Center.
The hospital previously was seeking reimbursement for more than $98,440 in damages from Butikofer, according to court documents.
However, recently filed documents state that restitution was no longer being sought in the court, as the hospital reached a resolution with Butikofer.
RMC marketing specialist Angie Wilson said the hospital cannot provide any further information about the case.
“As part of the settlement agreement, a confidentiality clause was included that required communication between Butikofer and Regional Medical Center to be kept confidential,” she said.
Butikofer was arrested after an investigation showed that he and System Fund and Development Director Michael D. Briggs accumulated nearly $280,000 in expenses “not found to be on RMC business,” according to court documents.
Most of the improper spending was tied to Butikofer, who was paid more than $256,675 for time spent on personal trips from January 2009 to March 2017, documents state.
Briggs pleaded not guilty to a charge of first-degree theft in his related case. His next court hearing is set for May 11.