Electronic health records vendor eClinicalWorks pays record $155 mill. to settle whistleblower case of Medicare fraud

whistleblower1-300x218eClinicalWorks, one of the country’s largest vendors of electronic health records will pay a $155 million to settle a whistleblower case where it is alleged that it caused health care providers to submit false claims to the federal government.

The acting U.S. attorney for Vermont said eClinicalWorks, of Westborough, Massachusetts, and three executives will pay the settlement to resolve allegations the company misrepresented the abilities of its software and paid kickbacks to some customers in exchange for promoting its products.

“Every day, millions of Americans rely on the accuracy of their electronic health records to record and transmit their vital health information,” Acting Assistant Attorney General Chad Readler, of the Department of Justice’s Civil Division, said in statement. “This resolution is a testament to our deep commitment to public health and our determination to hold accountable those whose conduct results in improper payments by the federal government.”

The case was originally filed as a whistleblower lawsuit filed in Vermont by a former employee of the New York City Division of Health Care Access and Improvement. The employee, Brendan Delaney, was implementing the eClinicalWorks electronic health records system at the Rikers Island jail complex when he noticed numerous software problems. Delaney will receive $30 million from the settlement. He is represented by the firm Phillips & Cohen. The settlement also resolves allegations that ECW paid kickbacks to certain customers in exchange for promoting its product. The settlement also resolves allegations that ECW paid kickbacks to certain customers in exchange for promoting its product.

Jeffrey Newman represents whistleblowers but not the whistleblower in this case.