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Health Records Vendor Fined $155 Million by DOJ

Posted: May 31, 2017 to News.

Tags: HIPAA, Compliance, Data Breach

The Department of Justice has slapped an electronic health records vendor, eClinicalWorks, with a $155 million fine in a false claims lawsuit. eClinicalWorks initially disputed the allegations made in the lawsuit, but eventually agreed to settle so they could avoid costly and drawn out litigation. Central to the lawsuit was the allegation that eClinicalWorks was giving customers incentives for promoting their products to gain certification. Specifically, the Department of Justice said eClicnicalWorks added some drug codes that were needed for certification into their code instead of letting the software access the codes from a database. They also left off an audit log to track user actions and they didn't fulfill data portability requirements that would allow doctors to transfer patient data electronic health record software by other developers. As a statement from the Department of Justice put it, eClinicalWorks "caused the submission of false claims for federal incentive payments based on the use of ECW's software." A representative from eClinicalWorks said they've taken steps to remedy the issue and that they're happy to get back to taking care of their customers. The exact amount eClicnicalWorks owes is $154,920,000, which is to come from CEO Girish Navani and CMO Mahesh Navani. A developer and two project managers are liable for a total of $80,000. $30 million of the fine will go to the whistleblower, who also filed the lawsuit.

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About the Author

Craig Petronella, CEO and Founder of Petronella Technology Group
CEO, Founder & AI Architect, Petronella Technology Group

Craig Petronella founded Petronella Technology Group in 2002 and has spent more than 30 years working at the intersection of cybersecurity, AI, compliance, and digital forensics. He holds the CMMC Registered Practitioner credential (RP-1372) issued by the Cyber AB, is an NC Licensed Digital Forensics Examiner (License #604180-DFE), and completed MIT Professional Education programs in AI, Blockchain, and Cybersecurity. Craig also holds CompTIA Security+, CCNA, and Hyperledger certifications.

He is an Amazon #1 Best-Selling Author of 15+ books on cybersecurity and compliance, host of the Encrypted Ambition podcast (95+ episodes on Apple Podcasts, Spotify, and Amazon), and a cybersecurity keynote speaker with 200+ engagements at conferences, law firms, and corporate boardrooms. Craig serves as Contributing Editor for Cybersecurity at NC Triangle Attorney at Law Magazine and is a guest lecturer at NCCU School of Law. He has served as a digital forensics expert witness in federal and state court cases involving cybercrime, cryptocurrency fraud, SIM-swap attacks, and data breaches.

Under his leadership, Petronella Technology Group has served 2,500+ clients, maintained a zero-breach record among compliant clients, earned a BBB A+ rating every year since 2003, and been featured as a cybersecurity authority on CBS, ABC, NBC, FOX, and WRAL. The company leverages SOC 2 Type II certified platforms and specializes in AI implementation, managed cybersecurity, CMMC/HIPAA/SOC 2 compliance, and digital forensics for businesses across the United States.

CMMC-RP NC Licensed DFE MIT Certified CompTIA Security+ Expert Witness 15+ Books
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