Laying on back is not normal behavior, and an indication of something very wrong, but I wouldn't know what. Honestly I don't think wood chips are typically used for geckos, and a cocofiber mix (like Eco-Earth) might be better BUT I'm unsure of how that would contribute to your problem.
I think it's important to realize that he was in poor health when you got him, and this may be due to that. Buying a sick geckos is ALWAYS an uphill battle, even for experienced keepers. Lacking husbandry can have lasting effects, and this may be due to the way he was treated for who knows how long, nothing you could control.

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