A US healthcare software provider has agreed to pay $31 million to settle allegations that it violated the False Claims Act and bribed customers to recommend its products.
The Department of Justice (DoJ) alleges that NextGen Healthcare fraudulently obtained certification that its Electronic Health Records (EHR) software meets US Department of Health and Human Services (HHS) standards. Under the American Recovery and Reinvestment Act of 2009, the government paid healthcare providers to expedite the adoption of certified EHR technology.
For more on health care prosecutions, read Healthcare company owner sentenced to prison in $7 million fraud scheme.
NextGen Healthcare’s software was incorrectly certified in 2014, according to the DoJ. This meant that it was released without certain key features, such as the ability to record vital signs data, translate the data into the required medical vocabulary, and create a complete clinical summary.
In the complaint, the government also alleges that the vendors violated anti-kickback laws by paying customers to introduce their products. Rewards for recommendations that lead to sales have seen payouts of up to $10,000, as well as tickets to sports and entertainment events in some cases.
“Electronic health records play a vital role in the delivery of safe and effective healthcare, and the EHR Incentive Program’s testing and certification process provides assurance to healthcare providers that an EHR can perform certain critical functions. to provide,” said U.S. Attorney Nicholas Keresto. For Vermont districts.
“With this settlement, the firm has resolved five investigations into misconduct by EHR companies, demonstrating our commitment to ensuring that EHR companies are held accountable for misrepresentations. “
The lawsuit was built in part on claims by two whistleblowers who worked at facilities that used NextGen’s software, the Justice Department said. As a result, the two companies will jointly receive more than $5.5 million.
