Electronic health firm denies misconduct, settles for $45M

Published: Nov. 2, 2022 at 10:25 AM EDT
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BURLINGTON, Vt. (AP) — A Florida-based health records company is denying allegations of misconduct made by the U.S. government, but has agreed to pay $45 million to resolve allegations that it improperly generated sales and caused users to report inaccurate information, the company said.

In a settlement announced Tuesday, the U.S. government alleged in the civil case that Modernizing Medicine Inc., of Boca Raton, violated the False Claims Act and the anti-kickback statute through marketing programs that increased its business and that of a laboratory company it was working with.

The company said in a statement that it decided to settle the case to fully resolve the matter. The settlement does not include any admission of wrongdoing or require changes to the company’s products.

Modernizing Medicine has historically made substantial investments to compliance programs and training and will continue to do so, the company said.

“We stand behind our people and our products and remain steadfast in our mission to place doctors and patients at the center of care,” the company said in a statement.

Prosecutors said that Modernizing Medicine solicited and received payments from the other company in exchange for recommending and arranging that its customers utilize the other company’s laboratory services, prosecutors said. The government alleged that Modernizing Medicine caused health care providers to submit false claims for reimbursement to the federal government and for incentive payments from the Department of Health and Human Services.

The settlement resolves allegations filed in Vermont by a former Modernizing Medicine vice president under the whistleblower provisions of the False Claims Act. The former official will receive about $9 million.

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