The U.S. Department of Justice has joined a whistleblower lawsuit that alleges Boca Raton-based ModMed defrauded the government and paid kickbacks to doctors who used its products.
The government will intervene in a case originally filed against ModMed (previously known as Modernizing Medicine), CEO Daniel Cane and Chief Medical Officer Michael Sterling in 2017, according to a court filing unsealed Friday.
The case was filed in the U.S. District of Vermont on behalf of Amanda Long, who served as VP of product management for the company from 2014 to 2017.
ModMed sells a cloud-based electronic health records system through subscription services to specialty medical practices. The software is used for clinical documentation, prescribing medications, telemedicine, billing and more.
In the lawsuit, Long alleges ModMed misrepresented the abilities of its software when seeking certifications from the U.S. Department of Health and Human Services. The company falsely claimed its product met the criteria of a government program that gave incentives to health care providers that use electronic medical records technology, the lawsuit alleges.
However, ModMed's software actually had flaws that made it unreliable and unable to meet the government's certification standards, according to court documents. That included inaccurately charting patient medical history, confusing patient charts, and electronically prescribing the wrong medications to patients.
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