DOJ Intervenes in False Claims Act Case Against EHR Vendor

On March 15, the Department of Justice filed a notice in the United States District Court for the District of Vermont indicating that it had elected to intervene in a False Claims Act lawsuit against Modernizing Medicine, Inc. (“ModMed”).  The lawsuit was the result of a qui tam whistleblower suit filed by a former executive of ModMed.  ModMed provides electronic health records (EHR) systems to doctors, physician groups, hospitals, and other entities providing health care services to patients.  The complaint alleges that ModMed caused false claims to be submitted to the government by ModMed’s clients through incentive programs designed to encourage health care providers to utilize certified EHR software.  The government and relator allege that ModMed made false representations to certifying bodies in order to gain approval to be included in the HHS incentive program, that ModMed’s product was not qualified for certification, and that this led to ModMed’s clients submitting false information to the government and putting patients’ health at risk.

The complaint alleges that ModMed caused “thousands” of false claims to be submitted resulting in “millions of dollars” in improper payments by the government.  Under the False Claims Act, defendants found to have violated the statute are subject to treble (triple) damages for the amount of improper payments made by the government, and a per violation penalty of $23,607.  

The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with False Claims Act investigations and qui tam litigation.  If you need assistance with such a matter, please contact us today.