Electronic health record maker NextGen Healthcare to pay $31 million to resolve fraud claims

The health records company NextGen Healthcare will pay $31 million to resolve allegations that it paid kickbacks to win customers and concealed shortcomings of its software to gain government certification.

The settlement caps a lengthy investigation that cast a harsh light on NextGen’s efforts to gain market share in the sharp-elbowed business of selling electronic health records software.

Based on information from whistleblowers, prosecutors alleged that NextGen violated the anti-kickback statute by giving up to $10,000 in credits to existing customers whose recommendations of the software led to new sales. The government said the company also gave tickets to sporting events and other entertainment to induce referrals and sales.

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