False Claims Act Attorney News: ECW Settles for $155 Million

On Thursday, June 1st, 2017, the Department of Justice announced that electronic health records vendor eClinicalWorks (ECW) and various employees will pay $155 million to resolve alleged False Claims Act violations of misleading government agencies on the extent of the software. The settlement additionally addresses allegations that ECW provided kickbacks to certain customers for promoting the service. The suit alleges that ECW sought to qualify for financial incentives by achieving certification from the Department of Health and Human Services, but the software was designed only to pass specific components of the HHS test and not to comply with the entirety of HHS regulations. Other alleged inaccuracies of the service affected user action records, diagnostic imaging orders, drug interaction tests, and the abilities of healthcare providers to transfer patient data to other electronic health records vendors. The qui tam relator, a former employee of the New York City Division of Health Care Access and Improvement, will receive approximately $30 million as a share of the whistleblower recovery.

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