Terms Unconditional

EHR & Health Data Systems · EHR Vendor (Ambulatory/Practice) · Regulatory action

ModMed (Modernizing Medicine)

Headline

In November 2022 Modernizing Medicine (ModMed), the specialty EHR common in dermatology, ophthalmology and orthopedic practices, agreed to pay $45 million to resolve False Claims Act allegations.

Not independently verified. Verification status: Unverified - heuristic first draft. Publish state: draft unverified.

In November 2022 Modernizing Medicine (ModMed), the specialty EHR common in dermatology, ophthalmology and orthopedic practices, agreed to pay $45 million to resolve False Claims Act allegations. DOJ alleged that ModMed took kickbacks from pathology lab Miraca Life Sciences (now Inform Diagnostics) for steering its users' lab orders to Miraca, and conspired with Miraca to donate its EHR to practices to boost those orders. DOJ also alleged that ModMed paid customers and 'influencers' to recommend it and knew its software did not always let users record data in the required RxNorm and SNOMED CT vocabularies, so users' incentive-payment claims were false. These are allegations with no determination of liability. Its current Terms of Use send all non-provider users, including patients, to binding AAA arbitration with a class waiver and a one-year filing deadline.

  • SeveritySeverity 4 of 5, not independently verified. In November 2022 Modernizing Medicine (ModMed), the specialty EHR common in dermatology, ophthalmology and orthopedic practices, agreed to pay $45 million to resolve False Claims Act allegations.
  • Evidence tierUnassigned
  • Claims confirmedNo sourced claims yet
  • Last verified2026-10-15

Primary source. www.justice.gov/opa/pr/modernizing-medicine-agrees-pay-45-million-resolve-allegations-accepting-and-paying-illegal — Unverified - heuristic first draft.

Last verified 24 days agoverified 24 days ago0180 days
Freshness. Last verified 24 days ago (2026-10-15); stale after 180 days.

Terms

Arbitration

Yes, for non-provider users (website users and Patient Users). Section 11 of the Terms of Use (last updated Mar 4, 2026) requires 'final and binding arbitration' under AAA Commercial Rules after a 60-day good-faith period, waives class and jury trials, and requires disputes to be filed within one year. Liability is capped at the greater of fees paid for the services in the prior 3 months or $100. Florida law governs, with Palm Beach County courts for any non-arbitrable matters. PROVIDERS (the practices) are carved out: 'dispute resolution is instead addressed in and subject to the Transaction Documents', which are not public and were not reviewed.

Data sharing

Privacy Policy last updated January 10, 2025. Detailed sharing practices not reviewed this pass.

Who holds your data. Data chain: ModMed (Modernizing Medicine), then Clearlake Capital Group (private equity; majority stake 2025, from Warburg Pincus) (parent), then EHR vendor layer. See cross-cutting finding 16: THE EHR LAYER — THE COMPANY HOLDING YOUR CHART IS ONE YOU NEVER SIGNED WITH.

Fees and billing

DOJ alleged EHR 'donations' were used to drive lab orders and that customers were paid to refer. Current pricing and exit fees were not verified this pass.

Contacts

Privacy contact. Privacy Officer, 1-866-799-2146 (email obfuscated on page)

Legal notice. Modernizing Medicine, Inc., Attn: Privacy Officer, 4850 T-Rex Avenue, Suite 200, Boca Raton, FL 33431 (the site footer lists 4700 Exchange Court, Suite 225, Boca Raton, FL 33431). This is the address printed in the vendor's privacy notice, which is not necessarily the registered agent for service of process. For formal legal notice, check the notice clause in the practice's signed customer agreement and the Secretary of State registered-agent record in the state of incorporation.

Mailing address. Not recorded.

Written channel present
Paper trail: written. Written channel present.

Evidence

No claims have been itemized for this row yet.

Sources

SourceClaimTierStatusQuote
Federal agency press release (DOJ) · 2022-11-01
www.justice.gov/opa/pr/modernizing-medicine-agrees-pay-45-million-resolve-allegations-accepting-and-paying-illegal
whole rowUnassignedconfirmed“for too long electronic health record vendors have prioritized only sales.”
Quote basis: not recorded.
Company press release · 2025-03-03
clearlake.com/wp-content/uploads/2025/03/MMICLWP-Press-Release-vF.pdf
whole rowUnassignedconfirmedNo quote recorded.
Quote basis: not recorded.
Press (citing FT) · 2025
news.bloomberglaw.com/bankruptcy-law/clearlake-to-buy-stake-in-modmed-that-values-it-at-5-3b-ft
whole rowUnassignedconfirmedNo quote recorded.
Quote basis: not recorded.
Company terms of use · 2026-03-04
www.modmed.com/terms-of-use/
whole rowUnassignedconfirmed“These provisions will require you to submit claims you have against us to final and binding arbitration.”
Quote basis: not recorded.
Company privacy policy · 2025-01-10
www.modmed.com/privacy-policy/
whole rowUnassignedconfirmedNo quote recorded.
Quote basis: not recorded.

Source vault

Link status: Candidate - not yet fetched

DocumentLast fetchPDF
Privacy policy
https://www.modmed.com/privacy-policy/
Not fetched yetNOT CONFIRMED
Terms of service
https://www.modmed.com/terms-of-use/
Not fetched yetNOT CONFIRMED
Website
https://www.modmed.com/
Not fetched yet—
Primary source
https://www.justice.gov/opa/pr/modernizing-medicine-agrees-pay-45-million-resolve-allegations-accepting-and-paying-illegal
Verification: Unverified - heuristic first draft
Not fetched yet—

Enforcement

ActionAmountLink
United States ex rel. Long v. Modernizing Medicine ($45M EHR kickback settlement)
U.S. Department of Justice (Civil Division), U.S. Attorney's Office, District of Vermont, 2022
Settlement announced Nov. 1, 2022; No. 2:17-cv-179 (D. Vt.)
$45Mproposed

Links are proposed matches, not yet reviewed.

State statute

Headquarters on file: FL. Provisions of FDBR on file:

ProvisionTypeSource
Applicability — Narrowest of Any State; $1B Revenue + Specific Activities
Fla. Stat. § 501.702
thresholdsource
Enforcement — Highest Per-Violation Penalties; Trebled for Minor Violations
Fla. Stat. § 501.72
hardsource