Koreatown Medical Providers Settle for $62 Million Over False Claims

Health care providers in Koreatown and Northridge, California, have settled allegations for over $62 million concerning the submission of false diagnosis codes. The U.S. Attorney’s Office reported that Seoul Medical Group Inc. and its subsidiary, Advanced Medical Management Inc., agreed to pay $58.74 million after being accused of violating the False Claims Act by falsifying diagnosis codes to enhance Medicare Advantage payments. Former president Dr. Min Young Cha will pay an additional $1.76 million.

Renaissance Imaging Medical Associates Inc., a radiology group from Northridge, is also implicated, agreeing to pay $2.35 million for their role in the conspiracy. Federal officials emphasized the importance of truthful reporting in the Medicare Advantage program, reiterating that the government will act against those who misuse taxpayer funds.

Seoul Medical Group stated its commitment to compliance and quality healthcare, proclaiming that this settlement will not affect its operations or finances. The allegations stem from claims made between 2015 and 2021, involving diagnoses for conditions that patients reportedly did not have, leading to increased Medicare payments.