Officials from the state attorney general's office have revealed that they are investigating the financial operation of Downey Community Hospital.
Matt Ross, a spokesman for the state agency, declined to provide further details about the probe, but hospital officials said it started about a month ago.
The investigation follows allegations leveled by former members of the hospital's board of directors that the hospital's parent company, DCH Health Services, misused donations to the hospital by using them to fund insurance and administrative services.
Don Miller, the hospital's chief administrator, said he welcomed the probe as a chance to clear the hospital's name.
"I'm absolutely convinced that they'll come up with nothing because there is nothing," Miller said. "It's probably a blessing in disguise. Maybe this will give more people an opportunity to see that everything's just fine."
The attorney general's office conducted an investigation into the hospital's finances two years ago. That probe found the allegations to be meritless, Miller said.