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DoJ Slaps $250K Fine on Coffey Health for Lying about EHR Security

The Department of Justice is fining Kansas-based Coffey Health System $250,000 for lying about its EHR security to get Medicare and Medicaid incentive payments.

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By Fred Donovan

- The Department of Justice (DoJ) is fining Kansas-based Coffey Health System $250,000 for lying about its EHR security to get Medicare and Medicaid incentive payments.

In its lawsuit, DoJ alleges that Coffee Health System falsely attested that it conducted and reviewed security risk analyses of its EHR system to fulfill requirements under the federal EHR incentive program for the reporting periods of 2012 and 2013.

“Medicare and Medicaid beneficiaries expect that providers ensure the accuracy and security of their electronic health records,” said U.S. Attorney Stephen McAllister. “This office remains committed to protecting the federal health programs and to hold accountable those whose conduct results in improper payments.”

Steve Hanson, special agent in charge, HHS Office of Inspector General, Kansas City region, stated, “Providers who fail to properly ensure the security of electronic health records must be held accountable.”

Under the program, HHS offers incentive payments to healthcare providers that adopt certified EHR technology and meet certain requirements relating to their use of the technology, such as conducting a security risk analysis.

The program was set up by the American Recovery and Reinvestment Act of 2009 to encourage providers to demonstrate their “meaningful use” of EHR technology.

The settlement with Coffey Health System resolves allegations in a lawsuit filed by Bashar Awad and Cynthia McKerrigan under the whistleblower provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action. As a result of the settlement, Awad and McKerrigan will receive approximately $50,000 of the $250,000 penalty.

HHS OIG and the U.S. Attorney’s Office for the District of Kansas cooperated on the investigation. The U.S. government was represented by Assistant U.S. Attorney Jon Fleenor.