I must say, the recent notice that eClinicalWorks has been fined $155 Million to settle the claim “…to resolve a lawsuit filed by the federal government alleging false claims of software performance and kickbacks to customers for false product promotions…” is not a great surprise.
Sure, we’d all like to think everything is done on the up-and-up, but they aren’t.
If you’ve paid attention to the EHR vendor market, you know it was a race to gain as many customers as possible, then try to become too big to fail.
In that race, people can make bad decisions.
I don’t want to focus on that…what I really want to focus on is the fine structure…and how it can relate to your medical business.
You see, your lack of HIPAA compliance can be brought up to the federal government by anyone who know of it. A whisleblower.
Back to the ECW situation:
Total fine: $155 Million
The top 3 C-class folks (CEO, CMO, COO) are personally – YES PERSONALLY – responsible for $154.9 million of that. Not the company, these 3 personally.
Next, one of the developers is personally responsible for $50,000 and two project managers are liable for $15,000.
I guarantee you, that programmer and the project managers never thought they could get fined personally for something like this.
Just like your staff members can be personally fined for HIPAA violations.
Interesting also, the whistle blower is to make $30 Million.
Think that is motivation for a disgruntled former staffer to become a whistle blower?
Make sure your HIPAA House is in order folks.