Electronic health record provider Allscripts has reached a tentative $145 million deal with federal investigators related to HIPAA and kickback allegations against another provider it acquired last year.
Allscripts officials revealed the potential settlement to investors on a second-quarter earnings call last week, Fierce Healthcare reported.
Allscripts, which has claimed in the past to serve 90% of the nation’s top nursing home chains, purchased the smaller Practice Fusion in 2018 for $100 million. This March, the Department of Justice subpoenaed Practice Fusion in connection with an investigation into that vendor’s IT software certification in connection with the Electronic Health Record (EHR) Incentive Program overseen by the Office of the National Coordinator for Health IT.
Practice Fusion now operates as Veradigm.
“The main focus has been on actions that occurred prior to our ownership and thus we were highly motivated to reach an accord with the DOJ as soon as possible so that we could put this chapter behind us and focus our team on serving our clients,” Allscripts President Rick Poulton said.
The company noted in its earnings statement that it had charged the $145 million to its second quarter, believing the amount “sufficient to resolve all potential civil and criminal liability” in the case.