Allscripts' Practice Fusion hit with grand jury subpoena over meaningful use claims, HIPAA compliance

EHR vendor Practice Fusion, a subsidiary of Allscripts, received a grand jury subpoena in March in relation to an ongoing criminal investigation, Allscripts reported in a May 2 filing with the U.S. Securities and Exchange Commission.

The subpoena relates to certifications Practice Fusion received through HHS' EHR incentive program, formerly referred to as the meaningful use program, as well as the company's compliance with the anti-kickback statute and HIPAA, according to the filing.

"Practice Fusion has received a grand jury subpoena in the ongoing investigation," an Allscripts spokesperson said in an emailed statement to Becker's Hospital Review. "Practice Fusion continues to respond to all government requests for information and cooperate in the investigation. Because that investigation is ongoing, we are not providing additional information at this time."

In March 2017, the U.S. Attorney's Office for the District of Vermont requested documents and information from Practice Fusion as part of a civil investigative demand. Between April 2018 and January 2019, the company received five more document and information requests through an additional CID and HIPAA subpoenas, according to the report. Allscripts acquired Practice Fusion for $100 million in February 2018.

Allscripts management does not believe the company's pending legal proceedings or claims will have a "material adverse effect on our consolidated financial position, liquidity or results of operations," the report states.

Allscripts did, however, add that it is aware of other EHR providers that are involved in similar U.S. Attorney's Office investigations as well as two EHR vendors that recently settled allegations made by the Justice Department. The allegations had resulted from CIDs and "required significant payments and ongoing compliance costs in connection with long-term corporate integrity agreements," according to the filing.

"Similar settlements by or findings against us could have a material adverse effect on our business, financial condition and operating results," Allscripts wrote in the report.

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