Health records vendor settles false claims suit for $155M

Federal prosecutors say one of the country's largest vendors of electronic health records will pay a $155 million settlement to resolve allegations that it caused health care providers to submit false claims to the U.S. Department of Health and Human Services.

The U.S. attorney in Vermont says eClinicalWorks, of Westborough, Massachusetts, and certain employees will pay the settlement. The deal resolves allegations that the company misrepresented the abilities of its software and paid kickbacks to some customers in exchange for promoting its products.

Most of the money will go into federal Medicare and Medicaid funds.

The case began as whistleblower suit filed in Vermont by a New York City Department of Health employee. Prosecutors say Vermont is one of many states that had providers that used the software.

The company denies any wrongdoing.