United Sates of America, ex rel. Mark S. Razin v. Eisenhower Memorial Hospital
Cost Report Fraud
$8 million Settlement

This case settled in August 2005 when the Eisenhower Medical Center in Rancho Mirage paid the government $8 million to settle allegations that it fraudulently over billed federal health insurance programs. The allegations were brought by Mark S. Razin, a former employee of Healthcare Financial Advisors (HFA), a consulting firm that assists hospitals in preparing cost reports that are submitted to insurers.

The lawsuit, filed in 1998, alleges that HFA helped its hospital clients seek reimbursement for unallowable costs. The alleged over-billing occurred on the hospital's Medicare cost reports from 1990 through 1998 which included costs unrelated to patient care at the hospital. Reimbursement was sought for costs associated with an adult day care center, off-site clinics and a fundraising resale store, none of which are reimbursable by Medicare. The settlement was paid without Eisenhower admitting any wrongdoing.