Amanda Long, a former Vice President of Product Management at Modernizing Medicine Inc. (ModMed), filed a qui tam, or whistleblower, action in September 2017. She filed an amended complaint in May 2021, and the U.S. intervened in the case in March of this year. Now, Long will receive $9 million as part of a $45 million settlement ModMed will pay to resolve allegations that it violated the False Claims Act.
Background and Allegations
“ModMed is a privately owned vendor of health information technology including integrated electronic health record (“EHR”) software,” according to the settlement agreement. The U.S. alleged that ModMed “violated the FCA and the Anti-Kickback Statute through three marketing programs,” the U.S. Department of Justice (DOJ) press release states.
The Anti-Kickback Statute (AKS) “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,” according to the press release. The U.S. alleged that ModMed:
- “solicited and received kickbacks from Miraca Life Sciences Inc. (Miraca) in exchange for recommending and arranging for ModMed’s users to utilize Miraca’s pathology lab services”
- “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 customers to ModMed’s user base,” and
- “paid...
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