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(Continued From Page Al) care end Medi-Cal. Inflated land values gener ate higher reimbursements since such values are used in calculating the hospital’s cap ital equity, which is part of the reimbursement formula. A check of the two hospi tals’ cost reports to Medicare and Medi-Cal show that Mis sion Community Hospital’s land value claim is consistent with the value shown on the county tax rolls. However, “Mercy General Hospital claimed a land value of $917,126, slightly below Val lerga’s letter appraisal of $1,038,000 but well above the tax roll value of $369,040. Mercy’s cost report also re vealed that the percentage mix between costs related to supplies and salaries is not consistent with customary ra tio of 50-50. Instead, the hospi tal claim shows 65 per cent supplies and 35 per cent sala ries The confidential financial records, including company statements, cost reports and government ‘‘desk audits,” obtained by The Register show that tax dollars are the pillars of Dr. Cella’s empire. Last year Mission Commun ity Hospital received $2,366,012 in Medicare and Medi-Cal reimbursements, ac cording to government re cords. Yet, the company’s finan cial statement shows a net operating loss of $48,472 for the year. Though interlocking busi nesses, partnerships and cor porations, Dr. Cella and asso ciates are developing, operat ing and leasing hospitals, pharmacies, health clinics, medical laboratories and health testing institutes. The connections, some of which are declared on costs reports submitted to Medi care and Medi-Cal, maximize the tax dollar reimburse ments. The corporate ties realized certa partners personal profits regardless of the fu ture fate of the business, ac cording to corporation forma tion documents. Partners common to both the Bristol General Hospital Co. (Mercy General Hospital) and Mission Viejo Medical Co. Mission Community Hosp tal include Dr. Cella, Ri chard O'Neill, Dr. David Ascher, Dr. Clarence Burrill, Dr. John Kenney, Dr. Mitton Okin and the estate of Dr. Jerome Levy. Within the hospitals are pharmacies which are leased by separate but related part nerships. Fae relationship 15 disclosed on the hospitals cost reports to Medicare and Medi-Cal. But not disclosed and under investigation by the state and IRS is the printing of political pamphlets in a print shop formerly located in Mission Community Hospital. Investigators are seeking to determine if the political printing costs were included in the Medicare and Medi-Cal reimbursement claims. Dr. Cella and O’Neill are two of the major campaign contributors in the county and state. Last year they made well in excess of $500,000 in campaign gifts and loans. Approximately half that amount went to the campaign of state Controller Ken Cory who was then the Democratic assemblyman from Garden Grove. Earlier this year Cory made some controversial ap pointments to the posts of inheritance tax appraisers. Among those appointed was Murray Shell, a partner in the Mission Viejo Medical Co. Coincidentally Cory, Dr. Cella and O’Neill are partners in Kobe Enterprises, it has been learned. The partnership owns an approximate 500-acre unde veloped farm about 20 miles south of Sacramento. The property has a full cash value of $210,500, according to Sac ramento County assessor’s office records. Other businesses being re viewed where Dr. Cella is linked directly or indirectly include: Fountain Valley Medical Development Co. (Fountain Valley Community Hospital), Saddieback Medical Develop ment Co. (Tustin Community Hospital), Sunset Builders, Fairview Investments, Jeffer son Investments and Com munity. ae Industries. Dr. Cella, Dr.Ascher, Dr. Burris, Dr. Kenney and Dr. Okin are among the partners in Fountain Valley Medical Development Co. Dr. Cella, Dr. Ascher, Dr. Okin, Shell, Dr. Daniel Nin burg and Dr. Stanley May berg are among the partners in Fairview Investments which has management ties with Riverview Hospital in Santa Ana. Dr. Cella, Dr. Ascher and Dr. Ninburg are partners in Jefferson Investments which developed Canyon General Hospital in Anaheim. The hos pital declared bankruptcy earlier this year. Sunset Builders, also known as Sunset Properties and Sun set-Anaheim, build most of the hospitals in which Dr. Ceila is involved. Partners in the frm are David W. Hook, Robert P. Gillman and G. Theodore Erickson. The three men are among the partners in Saddleback Medical Development Co. Community Medical Indus tries in Santa Ana, a medical management firm, is owned by Massion Viejo Medical Co. in Fountain Valley Medical Development Co. and Saddle (Please Ture To Page Ai5)
Newspaper Details
Santa Ana Register
Santa Ana, California, US
Sun, Oct 12, 1975
Page 133
Full Page
Clipped by
Alec W.
USA 10 Jun 2026
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