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On November 1, 2022, the Department of Justice ("DOJ") announced that Florida-based electronic health record ("EHR") vendor, Modernizing Medicine ("ModMed").
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Whistleblower Rewarded over $800,000 for Reporting to the Government a Kickback Scheme of a Software Developer of Electronic Health Records Tuesday, May 4, 2021
May 4, 2021. A False Claims Act whistleblower received a nearly $800,000 whistleblower reward for reporting a kickback scheme of a software developer of electronic health records (EHR). This software developer called CareCloud Health, Inc., based in Miami, Florida, agreed to pay the Department of Justice almost $4 million under the False Claims. It was liable under the False Claims Act for paying unlawful kickbacks to sell its electronic health record software products and fraudulently receiving incentive payments under the Medicare and Medicaid incentive programs designed to encourage the use of EHR software.
The electronic health record vendor CareCloud has agreed to pay $3.8 million to resolve kickback allegations.
According to a press release from the Southern District of Florida U.S. Attorney s Office, the United States accused CareCloud of violating the False Claims Act and the Anti-Kickback Statute through its Champions Program marketing-referral initiative. Product functionality, reliability, and safety should drive a medical software company’s success, not illegal kickbacks paid to promote its products, said Acting United States Attorney Gonzalez in a statement. There is simply no place for kickbacks in our country’s healthcare system. Companies who ignore this will be held accountable, Gonzalez added.