Nacogdoches (Texas) Memorial Hospital terminated a $20 million contract with Cerner this week, opting to instead remain using its current Cerner EHR rather than transitioning to the vendor's Community Works platform.
The hospital had delayed finishing the new Cerner EHR system several times, most recently until this year or later, according to a July 29 Daily Sentinel report. While Nacogdoches Memorial will not move forward with the new EHR system, it will continue using its Soarian EHR, which Cerner acquired as part of its Siemens Health Services acquisition in 2015.
Nacogdoches accrued about $20 million in debt from the Community Works contract, which it settled for a $1.01 million termination fee and paid an additional $2.07 million, according to the report.
In a July 30 memo emailed to Becker's, the hospital's IT director Norman Moore said: "The termination of the Cerner Community Works project was a tough decision for all parties involved. Cerner worked with us and allowed us out of the contract because of our great working relationship and we all felt it was best for our hospital at this time."
Nacogdoches Memorial had entered the Cerner Community Works before the hospital's previous CEO Scott Street resigned in 2017, according to KTRE news.
"Nacogdoches Memorial Hospital remains a valued client and partner," a Cerner spokesperson said in an emailed statement to Becker's. "We look forward to continuing to work with them. While the hospital and Cerner reached an agreement to end one part of their contract, the hospital will continue to use Cerner solutions across their health system."
Editor's note: This article was updated at 5:30 p.m. CT to include a statement from Nacogdoches Memorial Hospital.