Health Tech Firm to Pay $3.8 Million to Settle Kickback Claims

April 30, 2021, 9:01 PM UTC

A Miami-based developer of electronic health records software will pay $3.8 million to resolve a whistleblower’s allegations that it paid illegal kickbacks to generate sales, the Department of Justice said.

CareCloud Health Inc. allegedly provided a variety of inducements to its existing clients to get them to recommend its ERH systems to prospective clients, including cash bonuses and percentage-success payments, the DOJ said in a Friday statement.

The alleged conduct violated the False Claims Act and the Anti-Kickback Statute, the department said.

CareCloud’s marketing-referral program prohibited participants from providing negative information about the company’s EHR products, the DOJ alleged. ...

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