Allscripts agrees to $145M settlement over Practice Fusion HIPAA, meaningful use investigations

Posted on: Friday, August 9, 2019 By: KorchekStaff

Allscripts has reached a tentative agreement with the Department of Justice to pay $145 million to settle investigations of the EHR vendor's subsidiary Practice Fusion's compliance with HIPAA and the anti-kickback statute, according to company officials.

Allscripts reported in May that Practice Fusion received a grand jury subpoena in March in relation to an ongoing criminal investigation relating to certifications Practice Fusion received through HHS' EHR incentive program as well as the company's compliance with the anti-kickback statue and HIPAA. Allscripts acquired Practice Fusion in February 2018 for $100 million, which was after the DOJ had begun investigations into practices of the company, Allscripts President Rick Poulton said during an Aug. 8 call with investment analysts.

"The main focus [of the investigations] has been on actions that have occurred prior to our ownership, and thus, we are highly motivated to reach an accord with the DOJ as soon as possible so that we can put this chapter behind us and focus our team entirely on serving our clients," Mr. Poulton said.

While the settlement of $145 million is not "insignificant," the amount is "in line" with other settlements in the industry, Mr. Poulton said. He added that the investigations "have many similarities to investigations that have either been settled or remain active with many of our industry competitors."

Allscripts will continue working with the DOJ to finalize details of the settlement over the next few months, Mr. Poulton said.

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