Pioneer's bankruptcy could force McKesson to nix contract

McKesson has threatened to remove its EHR and other IT equipment from a Pioneer Health Services hospital unless the bankrupt health system coughs up $908,151 in late rental payments, reports Winston-Salem Journal.

Since Magee, Miss.-based PHS filed for Chapter 11 bankruptcy protection March 31, McKesson claims it has failed to make lease payments for equipment used at Pioneer Community Hospital of Stokes County in Danbury, N.C. PHS uses McKesson technology at nine of its facilities.  

McKesson filed a motion Monday for PHS to pay the past-due amount immediately or allow McKesson to terminate their contract and remove its equipment from the Stokes facility, according to the article.

In July, a U.S. bankruptcy court judge in Mississippi approved an interim management contract allowing Lifebrite Hospital Group in Lilburn, Ga., to take over services at PCH. Should the court approve the final transaction, Lifebrite has agreed to assume $1.3 million in Medicare obligations and make a one-time $400,000 payment to PCH.

McKesson claims neither PCH nor Lifebrite have addressed post-bankruptcy payments to the IT provider, however.

A hearing on McKesson's motion is set for Sept. 9.

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