The software “failed to satisfy data portability requirements intended to permit health care providers to transfer patient data from ECW’s software to the software of other vendors.”

In addition, Delaney's law firm alleged that the company had “paid kickbacks totaling at least $392,000 to influential customers to recommend eClinicalWorks products to prospective customers and other kickbacks in the form of 'consulting' and 'speaker' fees.”

"I was profoundly saddened and disappointed by the indifference of senior health department officials and investigators for New York City when I provided detailed information about serious flaws in the EHR software that could endanger patients," Delaney said. He added that he was grateful to the government attorneys as well as his law firm for taking his charges seriously and pursuing them “quickly and thoroughly."


The settlement deal holds ECW and three of its founders – Navani, Chief Medical Officer Dr. Rajesh Dharampuriya, and Chief Operating Officer Mahesh Navani – jointly and severally liable for the payment of $154,920,000 to the U.S.

Software developer Jagan Vaithilingam will pay $50,000. Project Managers Bryan Sequeira and Robert Lynes will each pay $15,000.

ECW also has entered into a 5-year Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG) covering the company’s EHR software. One aspect of the CIA is that the company must hire an independent software quality oversight organization to monitor its software and provide reports to the OIG twice yearly. ECW must also alert customers to any safety issues and maintain a “comprehensive list of such issues and any steps users should take to mitigate potential patient safety risks.”

Beyond that, ECW will have to permit customers to get free updated versions, as well as supporting any client's efforts to move its data to competitors' EHR systems, should they choose to do so.

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