Oncology Practice Pays $26M in Medical Software Fraud Lawsuit

21st Century Oncology Inc. is a Ft. Myers-based oncology practice. A former employee approached the Department of Justice when he discovered software fraud committed by the practice. The company agreed to pay $26 million to settle the case, and the whistleblower will receive $2 million for his tip.

The Law Protects and Rewards a Whistleblower

When a knowledgeable attorney like those found at The Michael Brady Lynch Firm files a False Claims Act lawsuit, he or she files it under a seal. This means it is completely confidential. There is also a full disclosure statement in the suit, which details the evidence collected by a whistleblower.

After we file your suit, the Department of Justice will review the evidence before deciding to step in and decide if they want to prosecute the case. The government’s fraud investigator will work closely with you, the whistleblower to identify all responsible for the fraud.

You could be entitled to 15-30% of the funds recovered. In order to receive the reward, you must be the first one to file a case under the False Claims Act. This is why it is key to pick an experienced attorney to work quickly to get your compensation. Contact us today for more information.

Medical Software Fraud Whistleblower Lawsuit

The former Interim VP of Financial planning came forward to report 21st Century Oncology Inc.’s fraudulent practices. He mainly noticed improper use of their Electronic Health Records (EHR) software. The company falsified patient data, fabricated software utilization reports, and superimposed well-known EHR vendor logos onto the reports to make them look more legitimate.

The settlement also includes payments for alleged violations of the Stark Law. 21st Century Oncology Inc. was paying physician salaries well above market rate to capture their referrals for tests and other medical procedures. Also, the practice signed a five-year corporate integrity agreement. The CIA obligates 21st Century to undertake substantial compliance reforms, including hiring independent review organizations to conduct audits.

Also, the whistleblower will receive $2 million for his tip.

Multiple Medical Software Fraud Cases

This isn’t the first case of a medical practice using Electronic Health Records (EHR) to defraud Medicare or Medicaid.  In May, eClinicalWorks (ECW) settled a False Claims Act case for $155M. In that case, the company allegedly misrepresented the capabilities of its software. Instead of developing software that meets relevant requirements, ECW instead designed the software to pass the certification requirements.  In November, another company used the EHR software to double bill Medicare for anesthesia services.

It isn’t just smaller practices committing medical software fraud. An unsealed suit against 62 hospitals and CIOX Health (another EHR provider) revealed that almost 100 hospitals used the software in order to receive incentive payments.

Premier Complex Litigation Attorneys

The Michael Brady Lynch Firm has successfully represented thousands of consumers and recovered millions of dollars for their clients. Our team of attorneys has been recognized as some of the most experienced and successful in the country. Our award-winning staff is also sought after for our knowledge on complex litigation, scientific evidence development, negotiation strategies and trial tactics.

Most of all, our law office is resourceful and dedicated to pursuing any compensation you are due. Because of this, we have received a high degree of peer recognition and professional achievement, such as inclusion on numerous Plaintiff Steering Committees.  We will take whatever legal measures are necessary when fighting for your rights to damages.

Therefore, if you believe you have uncovered evidence of fraud involving a government-funded program, contact us today. Our attorneys have represented many clients in the past with complex cases. We will work tirelessly to obtain results on your behalf.

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