On November 1, 2022, the United States Department of Justice (“DOJ”) announcedi that Modernizing Medicine Inc., an electronic health records (“EHR”) technology vendor, agreed to pay $45 million to settle allegations that it violated the False Claims Act by engaging in several practices that caused its customers to submit false claims to federal health care programs.ii The government alleged that Modernizing Medicine improperly generated sales for itself and a strategic partner laboratory while causing health care providers to submit false claims for reimbursement to the federal government for laboratory services and for incentive payments for the adoption of “meaningful use” of Modernizing Medicine’s EHR technology. The DOJ confirmed that the United States would not have paid these false claims if it had known that the requests were associated with referrals obtained as a result of violations of the Anti-Kickback Statute.
In this action, a former vice president of Modernizing Medicine filed a complaint on behalf of the United States, and the United States in turn filed its own complaintiii in partial intervention alleging that Modernizing Medicine violated the False Claims Act by engaging in the following conduct, among other conduct, which resulted in Modernizing Medicine’s customers submitting tainted claims for reimbursement to federal health care programs:
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