Dive Brief:

• Electronic health record vendor NextGen Healthcare on Friday agreed to pay $31 million to settle allegations that it violated the False Claims Act by misrepresenting versions of its product and providing illegal incentives to induce referrals to its software, according to the Department of Justice.
• In a complaint filed along with the settlement, the DOJ contends that NextGen improperly sought HHS certification for its software by using an “auxiliary product” designed only to perform the certification, thereby concealing that its product lacked “critical functionality.”
• NextGen also violated the Anti-Kickback Statute by providing “remuneration” to clients — with tickets to sporting events and credits worth up to $10,000 — to incentivize purchases and referrals of NextGen’s software, according to the DOJ.

Dive Insight:

Despite its agreement to pay the settlement, NextGen denies the charges, according to a company spokesperson.

“The Company denies that any of its conduct violated the law, and the settlement agreement does not include any admissions of wrongdoing,” a NextGen spokesperson wrote in a statement to Healthcare Dive. “This agreement relates to claims from more than a decade ago.”

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