ModMed settles FCA, kickback allegations with DOJ for $45M

EHR

An electronic health records (EHR) software company paid $45 million to settle false claims allegations levied by the Department of Justice (DOJ) it received kickbacks and made improper payments to providers to increase its business.

Modernizing Medicine (ModMed) violated the federal False Claims Act and Anti-Kickback Statute through three undertakings, the DOJ alleged Tuesday in its complaint. The whistleblower, a former vice president at ModMed, originally filed a complaint and will receive a share of the total paid to the federal government, the DOJ said.

ModMed conspired with Miraca Life Sciences to improperly donate ModMed’s EHR product to healthcare providers to increase orders, according to the complaint.

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