Coffey Health System is paying the US government $250,000 to settle allegations it violated the False Claims Act, according to US Attorney Stephen McAllister.
Prosecutors alleged Coffey Health System falsely said it had “conducted and/or reviewed security risk analyses” to meet federal requirements of the Electronic Health Records Incentive Program for 2012 and 2013 reporting windows. The program offers payments to health care providers that adopt certified technology and then meet certain requirements when it comes to that technology’s use. The government said the hospital offered false claims to Medicare and Medicaid.
Allegations were made by Bashar Awad and Cynthia McKerrigan under the whistleblower provisions of the False Claims Act. These let private individuals sue on behalf of the government for false claims. Both will receive around $50,000 as part of the settlement.
In a separate news release, Coffey Health System says the two former employees filed in 2016 after saying the hospital had not properly logged hospital activities for implementing electronic health records in 2012 and 2013. Documentation for incentive payments relating to the conversion from paper to electronic records was also allegedly missing. This set off a three-year government investigation.
Coffey Health System denies any wrongdoing and says it maintained and documented its electronic health records properly. However, it chose to settle because of ongoing costs and the risk of “an unfavorable outcome.”
Coffey Health System received $2.2 million in incentive payments in 2012 and 2013. The $250,000 settlement amount does not include attorney fees, which have not been calculated.
