WASHINGTON, Nov. 1, 2022 /PRNewswire/ -- Modernizing Medicine (ModMed), a provider of cloud-based electronic health records (EHR) systems, has agreed to pay $45 million to the federal government to settle a whistleblower lawsuit filed in 2017 by Phillips and Cohen LLP of Washington, DC and Downs Rachlin Martin of Burlington, Vermont.
ModMed, based in Boca Raton, Florida, sells cloud-based electronic health records systems through subscription services, to specialty medical practices including dermatology and orthopedics. Medical providers use the software for clinical documentation, prescribing medications, telemedicine, billing, and more.
In March 2022, the U.S. Department of Justice joined the case against ModMed and its two founders and executives, Dan Cane and Dr. Michael Sherling, after an investigation. Today the United States filed its complaint in intervention alleging, among other things, that, from January 2010 through July 2017, ModMed engaged in multiple kickback schemes, including creating a "strategic partnership" with a clinical laboratory, Miraca Life Science, where Miraca would directly compensate ModMed when its users sent laboratory orders to Miraca. The alleged illegal conduct included providing Miraca with exclusive "enhanced" laboratory interfaces within ModMed's EHR that would drive diagnostic testing business to Miraca. The settlement resolves the allegations against ModMed. Allegations against Mr. Cane and Dr. Sherling also are dismissed with...
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