A lawsuit filed by Gary, Ind.-based Methodist Hospitals against technology companies for alleged fraud has been allowed to proceed by a federal judge, according to a Post-Tribune report.
Methodist, which operates three hospitals in Indiana, filed the suit in January against FTI Cambio HealthNET Systems Consulting and Medical Information Technology. The hospital system hired the companies in 2006 to assist in a financial turnaround.
The suit claims the companies deceived Methodist and persuaded it to drop a $25 million computer program it had recently implemented. HealthNET, in turn, installed a new program that allegedly failed and led to a virus on 40 percent of the system's computers. The virus caused patient information to disappear and Methodist ultimately dropped the new computer system after spending $16 million on it.
District Judge Philip Simon has said Methodist will eventually have to prove Jay Clifton, president of FTI and HealthNET, lied about the computer system's capabilities and cost, but the suit can continue for now, according to the report.
Judge to Hear Arguments in University of Louisville Hospital Records Case Dec. 21
Hearing Scheduled to Determine Whether to Unseal Highmark-West Penn Agreement
Methodist, which operates three hospitals in Indiana, filed the suit in January against FTI Cambio HealthNET Systems Consulting and Medical Information Technology. The hospital system hired the companies in 2006 to assist in a financial turnaround.
The suit claims the companies deceived Methodist and persuaded it to drop a $25 million computer program it had recently implemented. HealthNET, in turn, installed a new program that allegedly failed and led to a virus on 40 percent of the system's computers. The virus caused patient information to disappear and Methodist ultimately dropped the new computer system after spending $16 million on it.
District Judge Philip Simon has said Methodist will eventually have to prove Jay Clifton, president of FTI and HealthNET, lied about the computer system's capabilities and cost, but the suit can continue for now, according to the report.
Related Articles on Hospital Lawsuits:
UC San Diego Medical Center Sued for Alleged Immigrant DiscriminationJudge to Hear Arguments in University of Louisville Hospital Records Case Dec. 21
Hearing Scheduled to Determine Whether to Unseal Highmark-West Penn Agreement