January 20, 2025

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Customer Value Chain

Athenahealth to pay $18.25M for alleged False Claims Act violations

This piece has been up-to-date with a statement from an athenahealth spokesperson.

The U.S. Division of Justice announced this 7 days that digital wellness document vendor athenahealth had agreed to pay back $eighteen.twenty five million to take care of Bogus Statements Act violation allegations.

The federal govt alleged that the corporation had compensated illegal kickbacks – including inviting prospective customers and clients to all-expense-compensated sporting and leisure activities – to deliver sales of its EHR product.

As a result of these kickbacks, the govt claimed, athenahealth improperly generated sales for by itself even though triggering health care providers to post untrue statements related to incentive payments for adoption and significant use of the technology.

“Throughout the state, physicians rely on digital wellness data software package to offer crucial affected individual knowledge,” explained United States Legal professional Andrew E. Lelling in a statement.

“Kickbacks corrupt the marketplace for wellness treatment expert services and danger jeopardizing affected individual protection,” he explained. “We will aggressively pursue companies that fall short to perform by the rules EHR organizations are no exception.”

A spokesperson for athenahealth explained immediately after publication that “athenahealth destinations the greatest precedence on compliance with all laws and regulations governing our sector.”  

“While we have total self confidence in our strong compliance guidelines and programs, we agreed to this settlement—under which we acknowledge no wrongdoing—to set this subject driving us and shift ahead with our significant do the job on behalf of patients and health care providers,” the spokesperson continued.

WHY IT Issues

According to a complaint filed this past 7 days in district court docket, athenahealth compensated kickbacks to health care providers and other EHR distributors from January 2014 by means of September 2020 to induce them to purchase and recommend its EHR product.

The a few-pronged complaint focused on athenahealth’s all-expense-compensated outings, its referral incentive program and its payments to competing distributors that were discontinuing EHRs in exchange for recommending that their clientele transition to athenahealth’s product.

Less than its “Concierge Occasion” program, in accordance to court docket documents, athenahealth is explained to have offered current and opportunity clientele outings to the Masters Match, the Kentucky Derby, New York Manner 7 days, the Indy five hundred and the NCAA Ultimate 4, amongst other activities.

“Athena emphasised in invites to clientele that the Masters was a ‘bucket list’ item, and internal Athena documents mirror that it ‘heard from numerous attendees that this was a at the time in a life span option, and that they were really appreciative of athena’s generosity,'” study the complaint.

The vendor also allegedly compensated current clientele for referrals of new practices that signed up for athenaOne or athenaClinicals, irrespective of how substantially time the current shopper spent talking with the guide, in accordance to the complaint.

In addition, DOJ alleged that athenahealth compensated competitors in exchange for recommendations that clientele transition to athenahealth’s EHR platform.

The complaint notes that providers who used athenaClinicals and attested to applying accredited EHR technology to fulfill the requirements of the EHR incentive programs set up less than the HITECH Act gained incentive payments and/or avoided payment reductions.

The Anti-Kickback Statute can make it a criminal offense to give remuneration for the furnishing of any provider “for which payment could be designed in total or in portion less than a Federal wellness treatment program.”

“By the carry out alleged over, Athena knowingly and willfully available and compensated remuneration in violation of the [Anti-Kickback Statute] to induce the recipients to refer folks for the furnishing or arranging for the furnishing of Athena’s EHR items or to induce the recipients to purchase, lease, order, or prepare for or recommend the paying for, leasing, or buying of Athena’s EHR items, for which payment was designed in total or in portion less than Medicare and Medicaid, just about every a federal wellness treatment program,” study the complaint.

“As a result of the kickbacks, Athena knowingly submitted and prompted health care providers to post statements for federal incentive payments that were untrue or fraudulent, and not payable, in violation of the [Bogus Statements Act],” the complaint continued.

“If the added benefits of digital wellness data are to be fully understood, patients need to be self-confident providers have picked the most productive technique – not the just one paying out the major kickbacks,” explained Phillip M. Coyne, Unique Agent in Cost for the Business of Inspector Normal of the U.S. Division of Health and fitness and Human Products and services. 

Athenahealth’s settlement also resolves allegations in two whistleblower lawsuits.

THE Much larger Pattern

The federal govt warned again in 2017 that it would “vigilantly” crack down on untrue statements tied to EHR use. 

That exact yr, eClinicalWorks confronted a $155 million great for allegations that it gave its clients kickbacks in exchange for publicly promoting its items.

Considering the fact that then, there have been a handful of significant-profile cases lifted against EHR distributors, which includes allegations in 2019 that Greenway Health and fitness compensated clients to recommend its product to other people.

ON THE Record

“This resolution demonstrates the department’s continued dedication to holding EHR organizations accountable for the payment of illegal kickbacks in any kind,” explained Acting Assistant Legal professional Normal Brian Boynton for the Division of Justice’s Civil Division in a statement. 

“EHR technology plays an important part in the provision of health-related treatment, and it is significant that the collection of an EHR platform be designed without having the influence of inappropriate economical inducements,” he explained.

 

Kat Jercich is senior editor of Healthcare IT News.
Twitter: @kjercich
Email: [email protected]
Healthcare IT News is a HIMSS Media publication.