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Practice Fusion Inc. admits paying $145M settlement to resolve allegations related to kickbacks aimed at Opioid Prescription

Federal Prosecutor in Vermont said that the web-based electronic health company will pay $145 million for resolving civil and criminal charges as it helped in setting up an electronic system for health records that influenced physicians for prescribing opioid pain medication to the patients who haven’t needed them.

The United States Attorney Christina Nolan said that San Francisco based company; Practice Fusion Inc. took a bribe from the opioid company in exchange to encourage physicians to prescribe opioids by using its software.

The news is published on the official website of the U.S. Department of Justice.

Court documents shared that Practice Fusion asked for $1 million from Pharma Co. X Company in exchange for creating an alert in the electronic health record system of Practice Fusion. The alert caused influenced physicians to prescribe the more use of opioids than basically necessary.

Nolan said that companies knew this, the decision to violate medical guidelines was greed-driven, and the marketing department of Pharma Company X offered this in exchange for giving $1million to the Practice Fusion. This conduct by the Practice Fusion is abhorrent. He refused the identification of Pharma Co. X or say any other involved people would face civil and criminal penalties.

Across the United States, doctors rely on such electronic health record systems for providing important data related to patient and unbiased clinical information. Deputy Assistant General, Ethan Davis said kickbacks from opioid companies to the software vendor to influence the relationship of patients and physicians are not acceptable at any cost. Honesty is accepted and demanded from the software vendor while providing unbiased information to the physicians for making treatment decisions based on the given information. The prescriptions should be based on correct data.

Since the company Practice Fusion has been acquired by the web-based health record, Allscripts. The Vice President of Allscripts Brian Farley said that this conduct by Practice Fusion predated the acquisition of his company.

Also read- Study finds Gabapentin mixed with Opioid can lead to fatal overdoses

The settlement involved $26 million in criminal penalties and forfeiture and also in a separate civil settlement. Practice Fusion has agreed to resolve the issue by paying $118.6 million and to resolve the allegations by the settlement.

In the history of the federal court in Vermont, this case has the largest criminal fine. It is the first-ever case in which criminal action was taken against the vendors of health record software.

Nolan said the investigators working in her office discovered the case but no idea how they found it. The settlement required acceptance by the Practice Fusion about its wrongdoing. The company needs to admit its mistake and must invest heavily in conformity and an oversight organization. The agreement also involves the posting of documents about the misconduct on the public website by the Practice Fusion.

This is the third major cause of medical fraud prosecuted by the United States attorney.

Vermont prosecutors agreed with the eClinicalWorks, Westborough, and three administrators for paying $155 million as a settlement to resolve allegations relayed to kickbacks and misrepresenting the abilities of their software.

The HHS Office of Inspector General and different HHS agencies supported the investigation. The field office of FBI in Washington, DC, also provided investigative support.

The settlement only resolved the allegations and there has not any determination of accountability as to such civil claims.


Amna Rana

Amna Rana, a writing enthusiast and a microbiologist. Her areas of interest are medical and health care. She writes about diseases, treatments, alternative therapies, lifestyles and the latest news. You can find her on Linkedin Amna Rana.

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