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Practice Fusion, Conspiracy and Kickback Charges, Vermont 2020

Practice Fusion, a California-based electronic medical records vendor, has been ordered to pay a $145 million fine for its role in a conspiracy and violation of the Anti-Kickback Statute in connection with Pharma Co. X, an opioid company.

According to the United States Attorney for the District of Vermont, Christina E. Nolan, the company solicited and received remuneration from Pharma Co. X in exchange for creating and embedding clinical decision support alerts in Practice Fusion’s health record’s software to influence physician ordering of extended release opioids.

The scheme was uncovered as part of a Deferred Prosecution Agreement (DPA) between the US Attorney’s office and Practice Fusion, which was reached on January 27, 2020. Under the terms of the agreement, Practice Fusion was required to host a website containing documents underlying the criminal conduct.

Nolan praised the transparency of the public document repository, saying ‘the public has a right to understand how Practice Fusion promised to use its medical technology in ways commercially favorable to itself and an opioid company.’

The website, located at https://www.pfdatabasedistrictofvermontsettlement.net/, contains over 400 documents related to the case. It can be accessed by the public to understand the full extent of Practice Fusion’s involvement in the scheme.

The case serves as a reminder of the ongoing opioid crisis and the role that companies like Practice Fusion play in perpetuating it. The $145 million fine is one of the largest ever levied in Vermont and comes as part of a broader effort to hold companies accountable for their role in the crisis.

The US Attorney’s office has also made available additional information about the case, including links to the Government’s Information, DPA, and other court filings, at https://www.justice.gov/usao-vt/pr/electronic-health-records-vendor-pay-largest-criminal-fine-vermont-history-and-total-145.

The Department of Justice is celebrating its 150th anniversary this year, and more information about its history can be found at www.Justice.gov/Celebrating150Years.

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