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Hospital sues to terminate contract over alleged failed updates

Physicians, dentists and other health care professionals maintain their practices to provide proper care for their patients. There is always a business-side to a professional association - some medical clinics turn to management service organizations to handle running the business side of the practice. Nonetheless MSO's, clinics, hospitals and similar entities still need to protect business issues and, at times, bring litigation to ensure that the bottom line is protected.

A recent lawsuit in a Southern state highlights how contractual relations that go bad can adversely impact the business side of a medical entity, as well as the bottom line for the hospital or clinic. Weirton Medical Center has relied on an outside company to provide IT services for more than a quarter century, according to Becker's Hospital Review. 

Hospital Claims IT Support Failed To Update Software To Reflect Regulatory Change

In 2013, the medical center says they extended their IT services contract for 10 years with Siemens Health Services, based largely in part to assurances that the software systems would continue to be supported for the entire decade, according to court documents (Cerner later acquired Siemens and is named in the current lawsuit). The hospital says that the software was not properly updated to continue compliance with regulatory changes.

When Corporate And Litigation Lawyers Can Help Medical Entities

There are many levels of state and federal regulations that apply to medical entities. Compliance with HIPAA and other rules at all levels of government is a vital concern for medical professionals. The main purpose of the litigation is to terminate the contract. The medical center also seeks to have the vendor assists in the transition to a new vendor at the IT provider's expense. It is not clear from a recent news article whether the hospital is seeking damages.

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