The Izard County Medical Center LLC at Calico Rock has temporarily thwarted an attempt by a software company the hospital does business with to shut down the medical center’s electronic medical records.
Arkansas Business reports the hospital received a letter from the company, Computer Programs & Systems Inc. of Mobile, Alabama, August 2nd stating the hospital owed over $600,000 and needed to pay by August 10th. The letter said if the medical center did not pay by the deadline, access to its patient’s electronic records would be denied, essentially shutting the hospital down.
Prior to the deadline, the hospital at Calico Rock filed a lawsuit in Izard County Circuit Court asking for an emergency restraining order to prevent CPSI and its wholly owned subsidiary, Healthland Inc. from restricting access to the records. The medical facility also accused Healthland and CPSI of breach of contract for not providing enough notice about stopping the service.
The Izard County Medical Center hired Healthland six years ago to provide electronic medical records service at a cost of $722,000 which included the hardware, software and service fees, including $3,500 monthly.
In its letter, Computer Programs and Systems Inc. CEO Grant White said his company tried unsuccessfully multiple times to reach the hospital to discuss the outstanding balance.
The hospital denied that, saying the sides had talked as recently as July 27th. The lawsuit says the hospital has paid $110,000 this year and no less than $420,000 since July of 2016.
The temporary restraining order was issued August 10th by Izard County Circuit Judge Maureen Harrod to keep the software operating.
The case has been moved to U.S. District Court where it is pending.
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