NextGen Healthcare Inc. Agrees to $31 Million Settlement for False Claims Act Violation

The Department of Justice announced on July 14th that NextGen Healthcare Inc. has agreed to pay $31 million to resolve allegations of False Claims Act (FCA) violation. The government claims that NextGen misrepresented the capabilities of its electronic health record software while simultaneously paying for referrals, which is a violation of the Anti-Kickback Statute.

According to the allegations, NextGen provided credits, valued up to $10,000, to customers who could generate new sales for their healthcare software, and also offered tickets to sporting and entertainment events to incentivize clients. These payments were deemed unlawful as they aimed to induce referrals for services covered by federally funded healthcare programs.

The FCA case originated from two whistleblowers, who were healthcare professionals at a facility utilizing NextGen’s software. They filed a civil suit under the qui tam provision, which enables private citizens to sue on behalf of the government if they have knowledge of an individual or company defrauding the government. As part of the settlement, they will receive $5.5 million for their role in exposing the violations.