A whistleblower lawsuit filed against Community Health Systems charging the company with defrauding the United States Government of hundreds of millions of dollars is not the first time that CHS has agreed to a huge settlement for misconduct, imposed by the Department of Justice.
Health Management Associates, a subsidiary of CHS, in September 2018 agreed with the Department of Justice to pay more than $ 260 million for misconduct in emergency departments that included engaging in unnecessary admissions to CHS hospitals.
In a new lawsuit that until now has been filed under seal, two former employees of Community Health Systems contend that the electronic health record product of software vendor MEDHOST, which CHS uses, has flaws that could endanger patients.
MEDHOST strongly denies the allegations. “As is the case with complaints filed under the False Claims Act, the government can investigate the claims and has the opportunity to join the case,” the company notes. “To date, the government has declined to intervene. MEDHOST has been contacted by the Department of Justice on this matter and has been fully cooperative with its requests.”
The vendor further rejects claims that its software has pervasive flaws that make it ineligible for certification under the electronic meaningful use program.
“Hundreds of facilities have successfully used our software over the years and continue to do so today,” the company asserts. “We continue to have new buyers of our products and services, many of whom are large sophisticated organizations that conduct exhaustive analytics comparisons of MEDHOST to others in the industry.”
The lawsuit is available here.