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News Release — August, 21,2008

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MEDICAL BOARD OF CALIFORNIA


August 21, 2008


Medical Board of California Accusation leads
to surrender of former Newport Beach physician's license

SACRAMENTO — After being indicted on federal charges, former Newport Beach physician Paul A. Lessler had an Accusation filed against him by the Medical Board of California. Lessler stipulated to surrender his license to the Medical Board, effective August 21, 2008. Lessler and seven other doctors working with him at University Pain Specialists, together with other individuals, were federally indicted in U.S. District Court, Central District of California on February 14, 2007. The doctors were alleged to have been involved in a $12 million Medicare insurance scam. On May 24, 2007, Lessler pled guilty to three counts in the Indictment: violation of 18 U. S. C. sections 371 (conspiracy), 1347 (health care fraud), and 2 (aiding and abetting health care fraud). "The mission of the Medical Board is public protection, and this action reflects the board's ongoing commitment to that mission," said Barb Johnston, executive director of the Medical Board.

Lessler owned and operated a group medical practice called University Pain Specialists Medical Group. Seven other doctors worked with Lessler in his medical group. Lessler, along with these physicians, paid individuals (marketers) to recruit elderly, infirm, and mentally ill residents at board and care facilities for respiratory treatments. The marketers, in turn, paid illegal kickbacks to the owners and administrators of the board and care facilities for the referrals. The elderly, infirm, and mentally ill residents also were provided kickbacks, such as soda, candy, and donuts. The respiratory treatments included aerosol inhalations for sputum mobilization and manipulation of the chest wall to facilitate lung function. The respiratory treatments were provided by unsupervised respiratory therapists at the board and care facilities. Medicare was fraudulently billed on a daily or almost daily basis for these services, under the pretense that the treatments were rendered and directly supervised in the respective doctor's medical office. This was in direct violation of Medicare's coverage requirements.

The public record documents in this case can be accessed on our Web site at www.mbc.ca.gov under the heading "Enforcement Public Documents."

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The mission of the Medical Board is to protect healthcare consumers through the proper licensing and regulation of physicians and surgeons and certain allied healthcare professions and through the vigorous, objective enforcement of the Medical Practice Act, and, to promote access to quality medical care through the Board's licensing and regulatory functions.

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