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.
- Severity
- Evidence tierUnassigned
- Claims confirmed
- 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.
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.
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.
Evidence
No claims have been itemized for this row yet.
Sources
| Source | Claim | Tier | Status | Quote |
|---|---|---|---|---|
| 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 row | Unassigned | confirmed | “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 row | Unassigned | confirmed | No 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 row | Unassigned | confirmed | No quote recorded. Quote basis: not recorded. |
| Company terms of use · 2026-03-04 www.modmed.com/terms-of-use/ | whole row | Unassigned | confirmed | “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 row | Unassigned | confirmed | No quote recorded. Quote basis: not recorded. |
Source vault
Link status: Candidate - not yet fetched
| Document | Last fetch | |
|---|---|---|
| Privacy policy https://www.modmed.com/privacy-policy/ | Not fetched yet | NOT CONFIRMED |
| Terms of service https://www.modmed.com/terms-of-use/ | Not fetched yet | NOT 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
| Action | Amount | Link |
|---|---|---|
| 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.) | $45M | proposed |
Links are proposed matches, not yet reviewed.
State statute
Headquarters on file: FL. Provisions of FDBR on file:
| Provision | Type | Source |
|---|---|---|
| Applicability — Narrowest of Any State; $1B Revenue + Specific Activities Fla. Stat. § 501.702 | threshold | source |
| Enforcement — Highest Per-Violation Penalties; Trebled for Minor Violations Fla. Stat. § 501.72 | hard | source |