Electronic Healthcare Records , Fraud Management & Cybercrime , Governance & Risk Management
A healthcare services contractor has agreed to pay a $933,000 settlement in a federal whistleblower case involving alleged false claims by the entity about the security of electronic medical records containing the information of military personnel, diplomats and contractors.
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The settlement is the first under the Department of Justice's Civil Cyber-Fraud Initiative, which was launched last year.
The civil settlement resolves two actions brought against Comprehensive Health Services, based in Cape Canaveral, Florida, under the whistleblower provisions of the False Claims Act involving CHS' government contracts to provide medical services at U.S. military facilities in Iraq and Afghanistan.
Besides allegations that CHS made false claims about the security of its electronic medical records, the legal actions included allegations that CHS misrepresented to the U.S. State Department and Air Force that certain controlled substances provided at military facilities in Iraq and had been approved by the Food and Drug Administration or European Medicines Agency.
"This settlement demonstrates the department’s commitment to use its civil enforcement tools to pursue government contractors that fail to follow required cybersecurity standards, particularly when they put confidential medical records at risk," said Brian Boynton,...
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