United States of America, ex rel. Dr. Ronald Crowell v. Downey Community Hospital Foundation, et. al.
Cost Report Fraud
$2.2 million Settlement

This case settled in August 2004 when Downey Regional Medical Center (DRMC), paid the United States more than $2.2 million to resolve allegations that it had submitted false claims to Medicare, the taxpayer-funded healthcare insurance programs for many of the nation's elderly and disabled. DRMC is a 200-bed hospital located in Downey, California. The allegations were brought by Ronald Crowell, M.D., former head of emergency services at DRMC.

DRMC allegedly claimed and received reimbursement from Medicare- and ultimately from the taxpayers who fund the program for expenses which were non-allowable and non-reimbursable pursuant to applicable Medicare Statutes and regulations including certain interest expenses associated with Series 1993 Hospital Revenue Bonds issued by the California Health facilities Financing Authority; lobbying, legal and marketing expenses; and consulting and management fees.