Mo. and Ill. join other states to reach settlement with health records company

Mo. and Ill. join other states to reach settlement with health records company
The settlement reaches more than eight states. (Source: Picasa)

JEFFERSON CITY, Mo. (KFVS) - Missouri Attorney General Eric Schmitt announced that Missouri and several other states have reached an agreement with Practice Fusion, Inc.

Practice Fusion Inc. is a web-based electronic health records company. The company settled based on allegations that the company accepted payments from specific drug manufacturers, in exchange for promoting some of the same manufacturers’ drugs to physicians using Practice Fusion’s software.

According to the Missouri Attorney General’s Office, the promotions were pop-up notifications to physicians suggesting a particular drug be considered as they evaluated patients’ medical histories.

The settlement resolves allegations that the payments accepted by the company were accepted as kickbacks in violation of state and federal law.

“Promoting specific drugs through push notifications in exchange for payments is a violation of multiple state and federal statutes and eliminates the level playing field for the drug manufacturers that did not pay to have their products promoted,” said Attorney General Schmitt. “The Medicaid Fraud Control Unit of the Attorney General’s Office works hard every single day to root out fraud and recover taxpayer money, and this settlement is yet another product of their dedication.”

As part of a larger settlement, Practice Fusion has agreed to pay a total of $5,267,048 to the state Medicaid programs to resolve civil fraud allegations impacting Medicaid. Of that $5.2 million, $998,690.40 is apportioned to the State of Missouri’s Medicaid program.

This settlement came from an investigation conducted by the United States Department of Justice.

A National Association of Medicaid Fraud Control Units Team participated in settlement negotiations. The Team included representatives from the Offices of the Attorneys General for the states of Missouri, California, Illinois, Indiana, Louisiana, New York, Texas, and Virginia.

Practice Fusion is based in San Francisco, California.

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