September 26, 2023

NextGen Healthcare agreed to pay $31 million to settle allegations that the digital well being file software program developer provided kickbacks to draw customers, amongst different alleged False Claims Act violations.

The federal authorities intervened in a whistleblower lawsuit, initially filed in 2018 in a Vermont federal court docket, alleging NextGen gave clients tickets to reveals and sporting occasions, in addition to credit value as a lot as $10,000, to induce purchases and referrals. Within the grievance filed alongside the settlement, the federal government additionally alleges NextGen falsely licensed some variations of its software program that couldn’t file important signal knowledge, create sufficient medical summaries or translate knowledge into medical phrases, amongst different vital features.

“With this settlement, our workplace has now resolved 5 investigations into misconduct by EHR corporations, demonstrating our dedication to making sure that EHR corporations are held answerable for their misrepresentations,” U.S. Lawyer for the District of Vermont Nikolas Kerest mentioned in a information launch.

A NextGen spokesperson mentioned in an announcement that the corporate denies that “any of its conduct that violated the regulation, and that the settlement settlement doesn’t embody any admissions of wrongdoing.”

The Justice Division alleges within the grievance that between January 2011 and July 2017, sure NextGen customers bought its EHR software program on account of kickbacks, after which unknowingly submitted tainted claims for incentive funds below the significant use program.

The $31 million settlement accounts for lower than 5% of NextGen’s fiscal 2023 income of $653.2 million. The whistleblowers—nurses who use the EHR software program as healthcare suppliers for the South Carolina Corrections Division—will obtain roughly $5.6 million of the settlement.

The Justice Division continues to crack down on EHR corporations that allegedly misrepresent the capabilities of their software program or drum up enterprise by way of kickbacks.

In November, the EHR software program developer Modernizing Drugs agreed to pay $45 million to settle allegations that the corporate offered kickbacks in change for referrals and prompted customers to submit inaccurate claims for federal incentive funds. In January 2020, Follow Fusion agreed to pay $145 million to settle allegations that the corporate solicited and obtained kickbacks from a serious opioid firm in change for utilizing its EHR software program to spice up opioid prescriptions.