Modernizing Medicine, the Boca Raton, Florida-based developer of electronic health record technology, has agreed to pay $45 million to resolve allegations that it violated the False Claims Act, the U.S. Department of Justice announced this week.
WHY IT MATTERS
The Justice Department alleges that ModMed accepted and provided "unlawful remuneration in exchange for referrals and by causing its users to report inaccurate information in connection with claims for federal incentive payments."
As U.S. Attorney for the District of Vermont Nikolas P. Kerest explained in a statement, "the government alleges that for years, ModMed, through a variety of schemes, engaged in illegal kickbacks that distorted both the EMR and pathology lab markets, in addition to providing its users with a deficient product. This resolution reflects the seriousness of the government's allegations and the determination of the Department of Justice to restore integrity to the electronic health record field."
The DOJ alleges that ModMed violated the FCA and the Anti-Kickback Statute through three marketing programs:
The company is alleged to have solicited and received kickbacks from Miraca Life Sciences in exchange for recommending and arranging for ModMed's users to utilize Miraca's pathology lab services.
The complaint also alleges that ModMed conspired with Miraca to "improperly donate ModMed's EHR to health care providers in an effort to increase lab orders to Miraca and simultaneously add...
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