modernizing medicine

Department Of Justice To Join Lawsuit Against Boca Raton Medical Records Company

Boca Raton Florida LAWSUITS News Palm Beach County

BY: STAFF REPORT | BocaNewsNow.com

BOCA RATON, FL (BocaNewsNow.com) (Copyright © 2022 MetroDesk Media, LLC) — The United States Department of Justice is preparing to join a lawsuit against Modernizing Medicine, a Boca Raton-based medical records company.

The original whistleblower lawsuit, filed by the national law firm of Phillips and Cohen, alleges that Modernizing Medicine and co-founder Daniel Cane violated the “False Claims Act” involving electronic health records and illegally providing kickbacks to physicians.

This is part of the advisory issued by Phillips and Cohen:


ModMed sells a cloud-based electronic health records (EHR) system, through subscription services, to specialty medical practices, including, gastroenterology, orthopedics, ophthalmology, otolaryngology, pain management, plastic surgery, rheumatology, urology and dermatology practices. Medical practices use the software for clinical documentation, prescribing medications, telemedicine, billing and more.

The “qui tam” (whistleblower) complaint was filed under seal in 2017 by Phillips & Cohen LLP on behalf of a former ModMed executive. The case became public yesterday when a federal district court in Vermont lifted the seal. DOJ filed a notice of partial intervention on March 15 and is continuing to investigate the allegations. The government is expected to file its complaint against ModMed, specifying what charges it is making against the EHR company, in the next 90 days or so.

The whistleblower complaint is posted here.

The complaint names as defendants ModMed, based in Boca Raton, Florida, and its CEO Daniel Cane. A founder of ModMed, Cane previously founded the educational software company, Blackboard.com, which he later sold.

The “relator,” or whistleblower, in the False Claims Act case is Amanda (Mandy) Long. She was recruited as a product director by Cane in 2014 and was promoted multiple times, eventually becoming Vice President of Product Management. She resigned in 2017.

“I am pleased the Justice Department recognizes the seriousness of this matter and is intervening in the case after investigating my allegations,” said Long.

The False Claims Act empowers whistleblowers to file qui tam lawsuits to sue entities that are defrauding the government. The law requires that the cases be filed under seal. The government then investigates the allegations and decides whether to join the case before it is made public.  Whistleblower rewards range from 15% to 25% of any recovery resulting from allegations in which the government intervenes and 25% to 30% of any recovery resulting from allegations in which the whistleblower pursues without government intervention.

Long and her attorneys expressed appreciation to the government for its quick response to her qui tam complaint. In particular, they thanked US Attorney Nikolas Kerest of the District of Vermont, Assistant US Attorney Owen C.J. Foster, Assistant US Attorney Lauren Lively, DOJ Civil Frauds Assistant Director Edward Crooke, DOJ Trial Attorney Kelley C. Hauser and DOJ Trial Attorney Sarah A. Hill.

Colette G. Matzzie, a whistleblower attorney and partner at Phillips & Cohen, and co-counsel Tristram J. Coffin, a partner at Downs Rachlin Martin PLLC, represent Long in the qui tam case.

This is the DOJ filing:

ModMed-DOJ-Notice-of-Partial-Intervention.3.15.22

 

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