Facts

Misha Kim was employed as a receptionist for the now-defunct GreatCare Home Health Inc., a home health agency that was based in Westlake. She filed a whistleblower lawsuit against GreatCare, its owners and director, Hee Mun; physicians, including Bo Paik; physical therapist; several licensed nurses; and other unlicensed persons employed by GreatCare alleging a Medicare kickback scheme.

The lawsuit alleged that GreatCare billed Medicare for thousands of home health visits that were not rendered, medically unnecessary, or both. Further, that GreatCare executed the scheme by recruiting Medicare beneficiaries, paying the beneficiaries and doctors kickbacks to induce referrals for home health services. The Anti-Kickback Statute prohibited anyone from offering, paying, soliciting or receiving anything of value to generate referrals for items or services payable by any federal health care program. Greatcare is alleged to have submitted home health care claims to Medicare for the patients referred to them by the physicians in return for kickbacks. The home health service provider allegedly operated this $5 million Medicare fraud scheme over a three-year period. GreatCare was shut down in 2011.

Result

Paik agreed to pay $530,000 in settlement without admitting any wrongdoing. The lawsuit remains pending against the other physician defendants.

Other Information

The owner of Greatcare has pleaded guilty to fraud charges. A nurse also pleaded guilty to committing health care fraud. They both face statutory maximum sentences of 10 years in federal prison. Several others have also been charged.