California medical officials have revoked the license of a Buena Park-based obstetrician and gynecologist. The Medical Board of California upheld charges against Bayardo Cruz for Medi-Cal fraud and administering intrauterine devices (IUDs) unapproved by the Food and Drug Administration.
Cruz operated a women's medical clinic in Los Angeles where the majority of his patients were recipients of Medi-Cal and Medicare. His practice included inserting IUDs, a form of birth control, into patients. He purchased each device, ParaGard T380A IUD, at wholesale price for approximately $300 to $400. Medi-cal partially reimbursed him for $250 per device. Cruz said he was losing money, according to court documents.
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That all changed when a local medical supply company, Universal Services, approached the doctor and offered him IUDs at a significantly lower cost of $30 per device. The company claimed the product was comparable to Paragard, but branded it under a different name; the devices were manufactured in Mexico and unapproved by the FDA. Cruz, however, took up the offer, and for every purchase of the $30 IUD, his office continued to bill Medi-Cal for the ParaGard version. Public records show that Cruz received reimbursements amounting to $38,321.12, and inserted 110 non-FDA approved IUDs in patients—the effects of which are unknown and haven't been reported.
In May, 2009, Cruz pleaded guilty on the count of fraud, and the court ordered him to repay the $38,000 in victim restitution, along with a three-year probation sentence, and 150 hours of community service.
Two years later, the state medical board's executive director, Linda K. Whitney, filed a formal complaint with the board seeking the revocation or suspension of the doctor's license. Cruz did not file a notice of defense to contest the accusation, and the board proceeded to revoke his license on July 3, 2012 after verifying the allegations.
