By Sarai Rodriguez

July 18, 2023 - NextGen Healthcare has arrived at a $31 million settlement with the Department of Justice (DOJ) to resolve allegations that it overstated its EHR capabilities to gain government certification, a violation of the False Claims Act.

A lengthy investigation revealed that the EHR vendor exploited an auxiliary product to pass the 2014 Edition certification criteria set by the Office of the National Coordinator (ONC).

This allegedly concealed the fact that the company’s EHR software was missing key functionality, thus leading to the approval of a product that did not meet all requirements.

Consequently, NextGen released critically deficient EHR software to users. It fell short of providing the capability to record vital sign data, translate data into the required medical terminologies, and generate comprehensive clinical summaries.

“Medical providers must be able to rely on EHR systems to correctly document and process important health data for continuity of patient care,” Special Agent in Charge Maureen R. Dixon for the HHS Office of Inspector General (HHS-OIG), said in a press release. “We will continue to work with our valuable law enforcement partners to evaluate allegations brought under the False Claims Act and ensure the integrity of Medicare programs.”

Adding another layer to the controversy, NextGen Healthcare is also accused of using kickbacks to gain new customers, spanning from January 2011 to July 2017. The US government alleged...

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