RPV Doctor to Pay $530K in Kickback Scheme Lawsuit

Rancho Palos Verdes doctor Bo W. Paik has agreed to pay $530,000 to settle a civil lawsuit alleging he received cash payments in exchange for referring Medicare beneficiaries to a home health agency, the U.S. Attorney's Office for the Central District of California announced Friday.

The settlement, signed Wednesday, states Paik will pay an installment of $400,000 by June 20, with the balance due in six months. He's already paid $30,000.

The settlement resolves allegations that Paik violated the federal False Claims Act, as well as the federal Anti-Kickback Statute. The lawsuit alleged he and his late wife, the manager of his medical office, received cash payments and patient referrals in exchange for referring Medicare beneficiaries to GreatCare Home Health, Inc.

Paik also allegedly violated federal law when he submitted claims to Medicare for services provided to patients who were referred to him by GreatCare, according to a press release.

The lawsuit alleged that over a three-year period, the home health agency billed Medicare for thousands of visits that "were not rendered, were medically unnecessary, or both," according to the release.

The lawsuit also alleged "that GreatCare executed the scheme by recruiting Medicare beneficiaries and paying kickbacks to the beneficiaries and to doctors to induce referrals for home health services."

Paik is the first defendant to settle the allegations made in the civil case, investigated by the Federal Bureau of Investigation and the Office of Inspector General of the U.S. Department of Health & Human Services. He agreed to pay the settlement without admitting any wrongdoing.