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Modernizing Medicine to Pay $45 Million to Settle False Claims Act Allegations
Modernizing Medicine Inc. (ModMed), a Florida-based electronic health record (EHR) technology vendor, has agreed to pay $45 million to resolve alleged False Claims Act (FCA) and Anti-Kickback Statute (AKS) violations. The settlement follows the government’s intervention in a qui tam lawsuit filed in the District of Vermont by a former ModMedVice President of Product Management. The government alleged that ModMed violated the FCA and AKS by accepting and providing remuneration in exchange for referrals and by causing its users to report inaccurate information in connection with claims for payment from federal programs.
Specifically, the government alleged that ModMed solicited and received kickbacks from Miraca Life Sciences Inc. (Miraca) so that ModMed’s customers would use Miraca’s pathology lab services. ModMed also allegedly conspired with Miraca to improperly donate ModMed’s EHR to health care providers to both increase Miraca’s lab orders and grow ModMed’s customer base. Finally, the government alleged that ModMed paid kickbacks to health care providers and other industry members in exchange for referrals to ModMed. As a result of these schemes, the government alleged that ModMed caused health care providers to submit false claims for reimbursement to federal health care programs. The government further alleged that...
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