US Attorney Alleges EHR Vendor Practice Fusion Violated DPA

The Office of the United States Attorney for the District of Vermont announced that it has resolved allegations that EHR vendor Practice Fusion, Inc. violated its deferred prosecution agreement (DPA).  

On January 27, 2020, the United States Attorney announced a resolution of criminal charges against Practice Fusion in connection with the vendor’s role in soliciting and receiving financial kickbacks in return for embedding prompts in its EHR to influence the prescribing of opioids.

As part of that resolution, the United States Attorney and Practice Fusion executed a DPA pursuant, which required the vendor to maintain an Oversight Organization for the duration of the DPA.

According to court documents, the United States Attorney alleged that Practice Fusion failed to comply with the terms of its DPA.  

Specifically, the United States Attorney alleged that Practice Fusion failed to retain a new Oversight Organization following the resignation of its previous Oversight Organization.

The United States Attorney also alleged that the vendor failed to provide its previous Oversight Organization with adequate access to information and witnesses to discharge its oversight responsibilities.

Additionally, the United States Attorney alleged that the EHR vendor failed to pay for certain expenses incurred by the Oversight Organization.  

Practice Fusion denied that it had failed to comply with the DPA terms. On March 18, 2022, the parties resolved the dispute.  

As part of the resolution, the period of Practice Fusion’s DPA shall be extended by eleven weeks, and Practice Fusion shall pay a fine of $200,000.

“Compliance with oversight obligations after resolution of cases with the Department of Justice is critically important, and companies under corporate integrity agreements, non-prosecution agreements, and deferred prosecution agreements must assiduously adhere to those responsibilities,” Nikolas P. Kerest, US Attorney, said in a public statement.

“This office will not tolerate failure to comply with oversight obligations, which provide the Department and citizens assurance that corporate wrongdoers have cleaned up their acts,” Kerest continued.

The DPA is pending in the District of Vermont, and the case is captioned United States of America v. Practice Fusion, Inc., No.  2:20-cr-11 (D. Vt.)

Owen C.J. Foster and Michael P. Drescher of the United States Attorney’s Office for the District of Vermont represent the government.

Laura Hoey, Christine Moundas, and Patrick Welsh of Ropes & Gray, LLP Practice Fusion represent Practice Fusion.

The government’s claims are allegations only. There has been no determination of liability.