Cloud-based healthcare technology provider NextGen Healthcare has agreed to pay $31 million to settle claims made by the U.S. Justice Department. The claims state that NextGen failed to maintain its electronic health record system up to required standards and provided kickbacks to customers who recommended its products.
Allegations of Certification Misconduct
According to the Justice Department, NextGen obtained certification from the U.S. Department of Health and Human Services for its electronic health record management platform without meeting the necessary functionality standards. The company released software that did not allow users to record vital sign data or translate data into required medical vocabularies.
The Department of Health and Human Services provides incentives to companies that offer electronic health record software meeting specific standards. To qualify, the software must pass a review conducted by an independent testing laboratory and certification body.
Illegal Kickback Scheme
In addition to the certification misconduct, NextGen was accused of illegally offering credits, some valued at up to $10,000, to customers who referred their products to potential new clients. This practice violates federal law, which prohibits companies from paying for referrals related to systems covered by Medicare or Medicaid.
Compensation for Whistleblowers
As part of the settlement, NextGen will pay $5.58 million to address claims brought forth by whistleblowers who worked at a facility utilizing NextGen’s system.
This settlement marks an important step in ensuring compliance and maintaining integrity within the healthcare technology industry.
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