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Friday, May 8, 2026

DOJ Announces $45 Million Settlement with EHR Vendor Over False Claims Act Violations - Policy & Medicine

On November 1, 2022, the United States Department of Justice (DOJ) announced a $45 million settlement with Modernizing Medicine, Inc., an electronic health record (EHR) company over allegations that it violated the False Claims Act. According to the DOJ, Modernizing Medicine accepted and provided illegal remuneration in exchange for referrals, and caused users of its software to report inaccurate information in connection with claims for federal incentive payments.

The case against Modernizing Medicine was initially brought by a former Vice President of Product Management at the company under the qui tam provisions of the False Claims Act.

The DOJ alleges that between 2010 and 2013, Modernizing Medicine violated the False Claims Act and the Anti-Kickback Statute through three schemes. First, Modernizing Medicine solicited and received kickbacks from Miraca Life Sciences, Inc., in exchange for Miraca recommending and arranging for Modernizing Medicine customers to use Miraca’s pathology lab services. Second Modernizing Medicine and Miraca conspired to donate the EHR to certain health care providers to increase lab orders to Miraca and add users to Modernizing Medicine’s customer base. In that case, the donation decisions accounted for the volume/value of the laboratory test referrals. Finally, Modernizing Medicine paid kickbacks to its health care provider customers (and other influential health care industry members) to recommend Modernizing Medicine’s EHR and refer...



Read Full Story: https://news.google.com/__i/rss/rd/articles/CBMie2h0dHBzOi8vd3d3LnBvbGljeW1lZ...