The Knox County Hospital has filed an Emergency Temporary Restraining Order against software provider CSS Health Technologies, Inc. after the company threatened to terminate the contract with the hospital.
In May 2013, CSS entered into an agreement with the hospital to update its billing software to provide better patient care and streamline the hospital’s billing system.
However, hospital officials say they have had trouble with the system since its inception. The crowning blow came this past month when a glitch kept the system from billing 12,000 procedures, an error that could have cost the hospital $200,000.
“The system does not work like it is supposed to,” Dr. Tom Ashburn told the hospital board at its last meeting.
Fortunately, hospital personnel quickly stepped in to manually process the transactions.
According to an affidavit by Knox Hospital Corporation Administrator Ray Canady, CSS Health Technologies, Inc. has threatened and continues to threaten to terminate the hospital’s software license.
Canady says that if the hospital’s software license were terminated, the hospital could no longer function and could no longer provide healthcare services to the community.
“We took this action,” said Ray Canady, Hospital Administrator, “and all the actions we’re taking at the hospital are based on what we think is necessary to provide the best patient care possible. Patient care is our top priority.”
He added that termination of the software license would result in immediate and irreparable damage to the hospital and the community because of the loss of healthcare services availability.
So, on Aug. 7 the Knox County Hospital filed an Emergency Restraining Order with the Knox County Circuit Court, claiming CSS made false representations to the hospital just to get the agreement signed, and that administrators feel the CSS’s claims were false and misleading, and a blatant attempt to defraud the hospital.
In order to secure the restraining order against CSS, the hospital has taken out a $10,000 plaintive injunction surety bond with Great American Insurance Company in order to protect CSS against loss in case the court decides the restraining order should not be granted.