In January of 2018, a major customer and MEDHOST were the subject of a complaint filed under seal alleging violations of the False Claims Act. These allegations were brought by two former employees in the IT department of our customer, and at this time do not represent conclusions or allegations brought by the government.
MEDHOST categorically denies all such allegations. As is the case with complaints filed under the False Claims Act, the government can investigate the claims and has an opportunity to join the case. To date, the government has declined to intervene. MEDHOST has been contacted by the Department of Justice in this matter and has been fully cooperative with its requests. The complaint was sealed until March 14, 2019 at which time it became public information. At least one healthcare publication has published a story on this filing that we believe is incomplete and misleading.
The complaint alleges that “Medhost’s software suffers from pervasive flaws that make it ineligible for certification under the Meaningful Use program.” MEDHOST rejects this claim in its entirety. Hundreds of facilities have successfully used our software over the years and continue to do so today. Also, we continue to have new buyers of our products and services, many of whom are large sophisticated organizations that conduct exhaustive analyses and comparisons of MEDHOST to others in the industry.
MEDHOST has been fully cooperating with the Department of Justice in its civil investigation, including requests for certain information and documentation regarding certification of MEDHOST’s EHR products and related Meaningful Use activities.
MEDHOST has been and remains very committed to providing its customers high quality products and services. We strongly disagree with any claim that MEDHOST or the functionality of its products or services have failed to achieve this goal, including in connection with any allegation under the current complaint. MEDHOST will continue to fully cooperate in this matter and make every effort to help bring it to conclusion as quickly as possible.