Practice Fusion, an electronic health records vendor acquired by Allscripts Healthcare Solutions last year, has received a grand jury subpoena as part of an ongoing criminal investigation.
Allscripts disclosed the subpoena in a filing with the U.S. Securities and Exchange Commission last week.
The subpoena, which Practice Fusion received in March, relates to "certain business practices engaged in by Practice Fusion," according to the filing, including the company's compliance with the anti-kickback statute and HIPAA. The investigation also concerns how the vendor obtained software certification under the Office of the National Coordinator for Health Information Technology's health IT certification program.
In 2017, a separate EHR vendor—eClinicalWorks—and some of its employees were ordered to pay $155 million for allegedly falsely obtaining certification for its EHR software.
Allscripts acquired Practice Fusion in February 2018, nearly a year after Practice Fusion received its first request for documents and information from the U.S. attorney's office in Vermont as part of a civil investigative demand. Between April 2018 and January 2019, Practice Fusion received five additional requests for documents and information.
Practice Fusion continues to produce documents and information in response to these requests, according to the filing.
Allscripts declined a request for comment on the ongoing investigation. The company does not comment on pending investigations, an Allscripts spokesperson said.
In its filing, Allscripts said its management does not believe pending legal proceedings or claims against the company will have a material adverse effect on its financial position.
However, the company acknowledged that it is aware of two EHR vendors that recently settled allegations with the Justice Department that resulted from civil investigative demands. These settlements "required significant payments and ongoing compliance costs in connection with long-term corporate integrity agreements."
"Similar settlements by or findings against us could have a material adverse effect on our business, financial condition and operating results," the filing said.
