Murrieta Physician Resolves Medicare Fraud Case, Will Pay $85K: Report

MURRIETA, CA — A Southwest Riverside County physician has agreed to pay $85,000 to settle a Medicare claim, according to the Department of Justice in a recent news release.

Michael Woo-Ming, MD, was named along with Zachary Lipman, MD, of Chico, in a fraud scheme that caused false claims to be filed to Medicare. Lipman agreed to pay another $290,000 in settlement of the claim.

"Both settlements are connected to a fraud scheme run by Kevin Brown, a chiropractor in California. Mr. Brown used his companies to receive Medicare reimbursements for surgically implanted neurostimulators, even though the companies neither performed surgeries or implanted neurostimulators," a report in Becker's ASC Review states.

According to the Department of Justice, the settlement with Dr. Woo-Ming resolves allegations that his companies Revive Medical of San Diego, which Woo-Ming co-owned with Brown, and Medical Wellness Group submitted false claims to Medicare for "surgically implanted neurostimulators, even though the companies did not perform surgery or implant neurostimulators."

In a prior settlement with the United States, Brown stipulated that he and his companies instead taped a disposable “electroacupuncture” device called “Stivax” to their patients’ ears. Stivax devices do not require surgical implantation and are not reimbursable by Medicare.

The United States alleges that this scheme violated the False Claims Act and the Anti-Kickback Statute, according to the statement.

“These physicians took part in a fraud scheme at the expense of hardworking taxpayers,” said Acting U.S. Attorney Michelle Beckwith. “My office is committed to working with our partners to address fraud schemes like these that divert funds from important federal health care programs like Medicare.”

“Improper financial arrangements can compromise medical judgment, adversely influencing the medical decision-making process,” stated Acting Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to protect the integrity of federal health care programs and those served by those programs.”