Medhealth Review

Electronic Health Records Firm to Pay $45M for False Claims

According to confirmed sources, an electronic health records firm has to pay around $45m for false claims. 

A Florida-based health records firm will now have to pay about $145 million in connection with making false claims. In addition, the company faces allegations that by relying on false claims, the firm could quickly generate sales for itself together with another firm.

It is alleged that the False Claims Act violation is involved. What caused trouble for the firm was its three marketing programs which led to an increase in revenue. Further, a laboratory also reaped the benefits of these campaigns.

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Modernizing Medicine now finds itself amidst a legal battle for receiving payments from the other firm. The charges were given for suggesting or recommending its customers to use other firms’ laboratory services.

“Electronic health records serve a critical role in informing physician decision making, and it is, therefore, essential that healthcare providers select such technology free from the influence of improper financial inducements,” says Attorney General Brian M. Boynton, Principal Deputy Assistant, head, Department of Justice’s Civil Division. 

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Modernizing Medicine allegedly conspired with the other firm to illegally donate its health-related electronic records technology to some healthcare providers to drive more business for itself and the other firm. 

The government also alleged that Modernizing Medicine made healthcare providers present false reimbursement claims to the federal government. The false claims thus submitted were in connection with the incentive payments and pathology services for ‘the adoption and meaningful use of the former’s electronic health records technology. 

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