On May 31, 2017, eClinicalWorks (“ECW”), one of the largest vendors of electronic health records software, and its founders, Girish Navani, Rajesh Dharampuriya, and Mahesh Navani, agreed to pay $154.92 million to resolve a False Claims Act suit against ECW that alleged the company abused a federal incentive program by misrepresenting the quality of its electronic health record software.  The federal Electronic Health Records Incentive Program offers financial incentives to health-care providers that adopt certain technology and meet certain requirements related to the use of that technology.  The government alleged in its complaint that ECW falsely certified its technology to receive funding from this program, in some cases by manipulating the software it used to pass certification testing without actually meeting the required criteria.  As part of the settlement, ECW will enter into a Corporate Integrity Agreement, under which it will be subject to special compliance measures and will be required to issue notices to customers about safety issues, to provide customers with updated versions of the software free of charge, and to give customers the option to move to another electronic health records software provider without penalties or service charges.  In separate agreements, Developer Jagan Vaithilingam will pay $50,000 and Project Managers Bryan Sequeira and Robert Lynes will each pay $15,000.  This suit was initially brought under the qui tam provisions of the False Claims Act by Brendan Delany, a software technician formerly employed by the New York City Division of Health Care Access and Improvement, who will receive about $30 million from the settlement.  United States ex rel. Delaney v. eClinicalWorks LLC, 2:15-CV-00095-WKS (D. Vt.).

DOJ Press Release