EHR & Health Data Systems · EHR Vendor (Ambulatory/Practice) · Regulatory action
Practice Fusion (Veradigm)
Headline
In January 2020 Practice Fusion, a free, ad-supported EHR used heavily by small practices, agreed to pay $145 million to resolve criminal and civil investigations.
Not independently verified. Verification status: Unverified - heuristic first draft. Publish state: draft unverified.
In January 2020 Practice Fusion, a free, ad-supported EHR used heavily by small practices, agreed to pay $145 million to resolve criminal and civil investigations. It was the first criminal action ever brought against an EHR vendor. Practice Fusion admitted that it solicited and received kickbacks from a major opioid company: nearly $1 million to build a 'pain' clinical decision support (CDS) alert. That is the pop-up a doctor sees while charting, and this one was designed to prompt more prescribing of extended-release opioids. DOJ said drug companies helped design the alerts, including the guidelines and trigger criteria, and that the alerts did not always reflect accepted medical standards. The civil settlement also covered 13 other pharma-sponsored CDS arrangements. In November 2020 Purdue Pharma pleaded guilty to conspiring with Practice Fusion to violate the Anti-Kickback Statute, having paid nearly $1 million between April and December 2016 for the software prompt.
- Severity
- Evidence tierUnassigned
- Claims confirmed
- Last verified2026-10-15
Primary source. www.justice.gov/archives/opa/pr/electronic-health-records-vendor-pay-145-million-resolve-criminal-and-civil-investigations-0 — Unverified - heuristic first draft.
Terms
Arbitration
The public website Terms of Use (last revised July 14, 2016) contain NO arbitration clause or class-action waiver. They require California law and San Francisco courts. Liability is capped at the greater of $100 or fees paid in the prior six months. Providers and patients also sign separate user agreements that control if they conflict with these terms. Those agreements were not retrieved this pass.
Data sharing
The Practice Fusion privacy policy (last updated Nov 15, 2024) lists sharing 'with third party service providers, including our advertising partners'. It also lists sharing with 'current and future subsidiaries or corporate affiliates or actual or potential investors'. It says sponsor/advertiser reports 'may include demographic or other general user information' without personally identifiable information unless the recipient has agreed to confidentiality obligations. The policy does not address de-identified health data.
Fees and billing
The business model historically relied on sponsorship and advertising rather than license fees. The DOJ case shows how the sponsor relationship reached into clinical content. Practice Fusion is no longer free: its pricing page lists the EHR 'starting at just $199/month per provider with a required annual commitment' (taxes extra; billing services quoted separately).
Contacts
Privacy contact. Privacy@veradigm.com
Legal notice. Veradigm, Attn: Privacy Officer, 222 Merchandise Mart Plaza, Suite 2024, Chicago, IL 60654. 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) · 2020-01-27 www.justice.gov/archives/opa/pr/electronic-health-records-vendor-pay-145-million-resolve-criminal-and-civil-investigations-0 | whole row | Unassigned | confirmed | “Practice Fusion's conduct is abhorrent.” Quote basis: not recorded. |
| Trade press (citing Reuters) · 2020-01-29 www.fiercepharma.com/pharma/purdue-was-unnamed-opioid-maker-at-center-healthcare-kickback-scheme-report | whole row | Unassigned | confirmed | “Purdue has been identified as "Pharma Co. X,"” Quote basis: not recorded. |
| Federal agency press release (DOJ USAO-VT) · 2020-11-24 www.justice.gov/usao-vt/pr/purdue-pharma-lp-pleads-guilty-federal-felonies-relating-sale-and-marketing-prescription | whole row | Unassigned | confirmed | “nearly $1 million in payments to Practice Fusion, Inc., an electronic health records company” Quote basis: not recorded. |
| Company privacy policy · 2024-11-15 www.practicefusion.com/pages/privacy-policy.html | whole row | Unassigned | confirmed | “With third party service providers, including our advertising partners” Quote basis: not recorded. |
| Company terms of use · 2016-07-14 www.practicefusion.com/pages/terms-of-use.html | whole row | Unassigned | confirmed | “SHALL BE LIMITED TO THE GREATER OF (1) ONE HUNDRED UNITED STATES DOLLARS (US $100)” Quote basis: not recorded. |
| Company website · 2026-10-14 www.practicefusion.com/ | whole row | Unassigned | confirmed | “Practice Fusion is a Veradigm Network solution” Quote basis: not recorded. |
| Company website · 2026-10-14 veradigm.com/privacy-policy/ | whole row | Unassigned | confirmed | “Headquartered in Chicago, IL” Quote basis: not recorded. |
Source vault
Link status: Candidate - not yet fetched
| Document | Last fetch | |
|---|---|---|
| Privacy policy https://www.practicefusion.com/pages/privacy-policy.html | Not fetched yet | NOT CONFIRMED |
| Terms of service https://www.practicefusion.com/pages/terms-of-use.html | Not fetched yet | NOT CONFIRMED |
| Website https://www.practicefusion.com/ | Not fetched yet | — |
| Primary source https://www.justice.gov/archives/opa/pr/electronic-health-records-vendor-pay-145-million-resolve-criminal-and-civil-investigations-0 Verification: Unverified - heuristic first draft | Not fetched yet | — |
Enforcement
No enforcement actions are linked to this row.
State statute
No comprehensive state privacy statute on file for IL