The US Department of Justice has announced that it intends to join a whistleblower lawsuit filed against EHR vendor Modernizing Medicine and cofounder and CEO Daniel Cane. The suit alleges that the company engaged in serious violations of the False Claims Act and illegal kickbacks to physicians.
The whistleblower in the case is Amanda Long, who joined the company in 2014 and exited her role as vice president of product management in 2017.
Modernizing Medicine sells a cloud-based EHR system to specialty practices, including gastroenterology, orthopedics, ophthalmology, otolaryngology, pain management, plastic surgery, rheumatology, urology and dermatology practices.
A law firm filed the whistleblower complaint under seal in 2017 on behalf of a former company executive. However, the case went public in late March when a federal district court in Vermont remove the seal. The DoJ intervened in mid-March and expects to file its own complaint against the vendor in the next 90 days or so, according to an agency press release.
The whistleblower suit asserts that millions of dollars in false claims were submitted to HHS. This included requests for both federal incentive payments and claims reimbursement submitted to federal insurance programs such as Medicare, Medicaid, and Tricare.
The suit claims that Modernizing Medicine falsely told certifying bodies and the US that its software met the requirements for certification and incentive payments under the meaningful use program. This...
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