Computer Programs & Systems investigating CFO’s use of company credit card

Ahead of the Bell: Computer Programs & Systems

NEW YORK — Computer Programs & Systems Inc. has suspended its finance chief while it investigates allegations that he used a company credit card to pay $55,000 worth of personal taxes, according to a securities filing made late Wednesday.

Computer Programs said other members of the company’s management team will take over CFO Darrell West’s responsibilities while he goes on administrative leave.

The company said its audit committee will conduct an internal investigation and its board has approved using an outside forensic accounting firm to help.

Computer Programs, which provides information technology products and services to hospitals, said it doesn’t expect the case to have any impact on its reported earnings or operations.

Messages left with the company seeking comment from West were not immediately returned.

The company’s stock was down 71 cents, or 1.7 percent, to $41.84 in premarket trading.

Jamie Stockton, an analyst with Morgan Keegan who follows the company, said the fact that internal company controls caught the incident is “a positive.” In a note to investors, he kept an “Outperform” rating on the company’s stock.