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CareCloud to Pay $3.8M to Settle Whistleblower Case Alleging Kickbacks What You Should Know: – Miami-based EHR company CareCloud has agreed to pay $3.8 million to the federal government to settle a “qui tam” lawsuit filed on behalf of a whistleblower by Phillips & Cohen LLP that alleged CareCloud paid kickbacks to healthcare providers to boost sales of its EHR products. – The “relator” (whistleblower) in the qui tam lawsuit, Ada de la Vega, was a senior manager at CareCloud who has since left the company and was awarded de la Vega approximately 21% of the settlement, or $803,269. The whistleblower lawsuit against CareCloud alleged the company violated the Anti-Kickback Statute and the False Claims Act. The False Claims Act prohibits entities from causing the submission of false claims for payment to the federal government. ....
Share this article Share this article MIAMI, April 30, 2021 /PRNewswire/ CareCloud Health Inc., a Miami-based healthcare technology company, has agreed to pay $3.8 million to the federal government to settle a qui tam lawsuit filed on behalf of a whistleblower represented by Phillips & Cohen LLP that alleged CareCloud paid kickbacks to healthcare providers to boost sales of its electronic health records products. The US Department of Justice intervened in the kickback claims against CareCloud in the lawsuit, which was filed under seal in 2017 in federal district court in Miami and announced today after the court unsealed the case. The qui tam complaint also alleged that CareCloud s EHR software had flaws that not only rendered the system unreliable and unable to meet Meaningful Use [federal] standards, but the flaws also created a risk to patient health and safety. DOJ did not intervene in those particular claims. ....
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