Justice Department to join whistleblower lawsuit against EHR vendor, CEO

The Justice Department has filed a notice that it will join a whistleblower lawsuit against EHR vendor Modernizing Medicine and its CEO and co-founder, Daniel Cane.

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Law firm Phillips & Cohen filed the complaint under seal in 2017 on behalf of Amanda Long, who resigned as Modernizing Medicine’s vice president of product management that year. The case, which became public March 24 when a federal district court in Vermont lifted the seal, alleges the company violated the False Claims Act through its software and illegal kickbacks to physicians.

The Justice Department filed a notice of partial intervention March 15 and is continuing to investigate the claims. The department will file a complaint against Modernizing Medicine, specifying which charges it is making, in “the next 90 days or so,” according to a March 25 news release

“At ModMed, we stand behind the integrity of our products and our people,” a Modernizing Medicine spokesperson said in a statement sent to Becker’s March 25. “We remain steadfast in our mission to place doctors and patients at the center of care through an intelligent, specialty-specific cloud platform. The Company disagrees strongly with the allegations in the qui tam complaint and we intend to defend vigorously against them.”

Modernizing Medicine is a cloud-based EHR vendor that sells its system to specialty medical practices.

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