Practice Fusion, the EHR vendor acquired by Allscripts last year, has received a grand jury subpoena as part of a criminal investigation.

Allscripts recently revealed its EHR system offering acquired through Practice Fusion is the subject of a grand jury subpoena, according to an Allscripts Securities and Exchange Commission (SEC) filing released May 3.

The criminal investigation centers on how Practice Fusion obtained health IT certification.

Allscripts officially acquired Practice Fusion on February 13, 2018 in a $100 million cash deal. Practice Fusion’s EHR technology complements Allscripts existing ambulatory clinical portfolio as a value offering to accommodate under-served clinicians in small and individual physician practices.

Practice Fusion received its grand jury subpoena in March 2019. The investigation relates to potential issues with the EHR vendor’s health IT certification and Practice Fusion’s compliance with the Anti-Kickback Statute and HIPAA.  

“Practice Fusion continues to produce documents and information in response to these various requests,” stated Allscripts in its SEC filing.

“These matters or any future government investigations into our other businesses (or existing government investigation of our EIS business) could result in criminal liability, the imposition of damages, non-monetary relief, significant compliance, litigation or settlement costs, or any other losses,” the EHR vendor continued.

Practice Fusion first came under fire from the Federal Trade Commission (FTC) in June 2016 following charges that the vendor had misled consumers about doctor reviews that were publicly posted. Practice Fusion allegedly did not inform consumers that their reviews would be posted publicly.

“Practice Fusion’s actions led consumers to share incredibly sensitive health information without realizing it would be made public,” said FTC Bureau of Consumer Protection Director Jessica Rich. “Companies that collect personal health information must be clear about how they will use it — especially before posting such information publicly on the Internet.”

Consumers and providers generally believed their feedback about Practice Fusion products would be kept private. After the settlement, Practice Fusion revised its email communications with consumers and its section on surveys and ratings to include statements that consumer feedback may be made public.