Modernizing Medicine strikes a deal with the government, resolving False Claims Act allegations.
Modernizing Medicine Inc. (also known as ModMed), an electronic health record (EHR) technology vendor based in Florida, has agreed to pay $45 million to resolve accusations that it violated the False Claims Act (FCA) by “accepting and providing unlawful remuneration in exchange for referrals and by causing its users to report inaccurate information in connection with claims for federal incentive payments,” court records show.
The False Claims Act, also called the “Lincoln Law,”is federal legislation which imposes liability on responsible parties who defraud government programs. The Anti-Kickback Statute, part of the FCA, prohibits anyone from “offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs.”
The U.S. Department of Justice (DOJ) alleged that ModMed violated the FCA and the Anti-Kickback Statute through three of its marketing campaigns. The filing states that ModMed’s “request for a higher valuation came at an unreasonable cost by crossing the line on prohibitions against kickbacks and upcoding federal health programs and ignoring known patient safety through shortcuts in software programming.”
It continues, “First, ModMed solicited and received kickbacks from Miraca Life Sciences Inc. (Miraca) in exchange...
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