ECW Settlement Agreement: Everything You Need to Know

ECW, or Electronic Clinical Works, is a technology company that provides electronic health records (EHR) solutions to healthcare organizations and practitioners. In 2017, the company settled a lawsuit with the U.S. Department of Justice (DOJ) for $155 million, alleging that ECW misrepresented the capabilities of its software and paid kickbacks to certain clients. Here`s everything you need to know about the ECW settlement agreement.

Background

The lawsuit was initiated in 2015 when a whistleblower, Brendan Delaney, filed a complaint under the False Claims Act. According to the complaint, ECW`s software did not meet the requirements of the Meaningful Use program, which was a set of regulations that encouraged healthcare providers to adopt EHR systems. As a result, healthcare providers who used ECW`s software could not receive the incentive payments provided under the program.

Furthermore, the complaint alleged that ECW paid kickbacks to certain clients to promote its software, which is prohibited under the Anti-Kickback Statute. The kickbacks included payments for referrals, free software, and training sessions.

Settlement Agreement

In May 2017, ECW entered into a settlement agreement with the DOJ to resolve the allegations. Under the agreement, ECW agreed to pay $155 million to the government and entered into a Corporate Integrity Agreement (CIA) with the Office of Inspector General (OIG) of the Department of Health and Human Services (HHS).

The CIA requires ECW to implement a compliance program and hire an independent reviewer to assess its compliance with federal healthcare programs. ECW also agreed to inform its clients about any software deficiencies and provide them with software updates and support services.

Impact on the Healthcare Industry

The ECW settlement agreement highlighted the importance of truthful and accurate marketing of healthcare products and services. It also reinforced the need to comply with federal healthcare regulations, such as the Anti-Kickback Statute and the False Claims Act.

The settlement agreement may have also impacted the adoption of EHR systems in healthcare organizations. Providers may have become more cautious in selecting EHR vendors and more diligent in verifying the capabilities of their software.

Conclusion

The ECW settlement agreement is a reminder that compliance with federal healthcare regulations is essential for healthcare organizations and technology companies that provide products and services to the industry. The agreement also reflects the government`s commitment to enforcing healthcare fraud and abuse laws and protecting the integrity of federal healthcare programs.