PORTLAND -- A Portland hospital nearly lost $250 million in Medicare funding last fall due to its poor handling of abuse allegations against a former nurse, according to a newspaper report.

The Oregonian reported that Legacy Emanuel Medical Center failed to properly investigate patient sex abuse complaints against emergency room nurse Jeffrey McAllister from 2009 until 2013.

McAllister was fired last April and has since been charged with 11 counts of sex abuse, including first-degree rape, first-degree sex abuse, and first-degree sodomy.

Background: Victims come forward in nurse sex assault case

The victims were incapable of consent by reason of mental incapacitation and physical helplessness, according to a probable cause affidavit.

According to documents obtained by The Oregonian, a charge nurse, the emergency room manager and the human resources department repeatedly mishandled the initial complaints.

McAllister remained on duty during the investigation and at one point another nurse emailed a patient complaint directly to McAllister, The Oregonian reported.

Administrators reportedly scrambled to shore up the issue early last year when they learned the hospital was on the verge of losing the funding.

Last fall, one of the alleged victims sued Legacy for $2.5 million for failing to report previous allegations of sexual abuse by McAllister to appropriate authorities.

More: Former patient sues Legacy for $2.5M over molestation

McAllister has pleaded not guilty and remains in jail on more than $2 million bail.

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