The Oregon state government has filed a lawsuit against Oracle for suddenly dropping its website hosting for the state's Medicaid program.
The Redwood Shores, Calif.-based company sent an email on the evening of Feb. 5 saying that it would terminate services at the end of February. Oracle had signed an agreement in September 2014 saying it would renew its contract while Oregon transitioned to a more long-term solution, and the state is asking for a court injunction forcing Oracle to continue hosting the Medicaid enrollment system.
"There is not sufficient time to find alternative hosting services for Oregon’s Medicaid enrollment system," the complaint read. "If Oracle breaks its promise to renew its contract with OHA, the State will be unable to enroll its citizens in Medicaid."
This is not the first legal scuffle between the state and Oracle. On Aug. 8, Oracle sued Oregon over the state's failed Cover Oregon HIE, claiming unpaid bills. Oregon fired back with a lawsuit on Aug. 22, claiming the company's incompetence cause the HIE to fail. The state had already signaled its intention to sue the company when Oracle sued first.