Hee Jung Mun, Medicare Fraud, California 2012

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$14.9M Penalty for California Home Health Agency Owner

LOS ANGELES – A federal judge has ordered the owner of a home health agency that operated in the Westlake District of Los Angeles to pay nearly $15 million – or approximately three times the losses suffered by Medicare as a result of the company’s illegal practices.

United States District Judge Stephen V. Wilson previously issued a $14,902,832 default judgment against Hee Jung Mun, the former owner and operator of GreatCare Home Health Agency, who was commonly known as Angela Mun. The judgment resolves a ‘whistleblower’ lawsuit filed by GreatCare’s receptionist.

According to the U.S. Attorney’s Office, GreatCare paid kickbacks to physicians and others to induce them to refer patients to GreatCare in a $5 million Medicare fraud scheme. In addition, Medicare beneficiaries were paid to sign up for GreatCare’s service, even though many of them were not eligible for home health services. GreatCare billed Medicare for services that were not rendered, were unnecessary, and/or were performed by unlicensed personnel.

In January 2012, Mun pleaded guilty to healthcare fraud charges for her central role in the scheme. As part of the scheme, Medicare beneficiaries were also paid to sign up for GreatCare’s service, even though many of them were not eligible for home health services. GreatCare billed Medicare for services that were not rendered, were unnecessary, and/or were performed by unlicensed personnel.

Other individuals involved in the scheme have also agreed to pay penalties. Dr. Dong Shin, one of the physicians who received kickbacks for referring patients to GreatCare, agreed to pay the United States $217,810 to resolve his civil liability. He has paid $150,000 of the settlement amount and agreed to make monthly payments until the balance is paid off.

Seonweon Kim, a physical therapist at GreatCare, agreed to pay the United States $205,000 to resolve his civil liability for his participation in the scheme. Dr. Whan Sil Kim, another referring physician, pleaded guilty to receiving kickbacks and was sentenced last year to one year and one day in prison. A consent judgment was entered against Dr. Kim for $1,088,799 to resolve her liability in the civil action.

The judgment against Mun and the settlements resolve the civil lawsuit United States ex rel. Kim v. GreatCare Home Health Agency, et al., a ‘whistleblower’ lawsuit that alleged GreatCare billed Medicare for thousands of home health visits that were not rendered and/or were medically unnecessary.