Methodist Hospitals in Indiana Reaches $5M Settlement With HIT Companies

Gary, Ind.-based Methodist Hospitals has settled a suit with several health information technology companies, resolving allegations that the system spent more than $16 million on a computer system that never worked, according to a Post-Tribune report.

Methodist sued FTI Cambio, HealthNET and Medical Information Technology in January 2011. The system hired FTI in 2006 for help in a financial recovery, and FTI was supposed to strengthen Methodist's IT.

Working with HealthNET, FTI allegedly told Methodist to drop the electronic medical record software system it had already spent $26 million on and instead install another system more favored by HealthNET and FTI. That EMR system cost about $25 million more than HealthNET and FTI told Methodist, according to the report, and the health system claimed the companies lied about the software's real costs.

After installing the more expensive software, Methodist underwent a computer virus that affected 40 percent of its computers. It stopped using that software in 2009, after spending roughly $16 million on it, as employees found it lost patient information, according to the report.

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