Hospital software lawsuit settled

The former Knox County Hospital and CSS Health Technologies, Inc., have finally come to terms.

The Knox Hospital Corporation originally filed a lawsuit against CSS on Aug. 7, 2015, when a glitch kept the hospital’s billing system from billing 12,000 procedures, an error that could have cost the hospital $200,000.

When CSS threatened to terminate the hospital’s software license, the hospital filed a restraining order with the Knox County Circuit Court.

CSS then filed a removal of the case from Knox Circuit Court to U.S. District Court on Sept. 2, 2015.

In January 2016, the parties’ attorneys requested a judge serve as mediator in an effort to reach a settlement, but were ordered to employ a private mediator.

Mediations apparently worked because on Feb. 2 the hospital and CSS resolved their issues set forth in the lawsuit and agreed on a tentative settlement in U.S. District Court, the details of which will not be made public.

According to court documents, both parties submitted a status report indicating that all claims have been tentatively settled. They now have 30 days to file an Agreed Order of Dismissal in the case. If the order is not filed within 30 days, the court could dismiss the case without prejudice.

Harlan E. Judd, III, attorney for CSS, was pleased with the outcome of the settlement, “The case was amicably resolved between the two parties with the highest professionalism and ongoing relationship between the two parties,” said Judd. “We appreciate the hospital working with us.”

Gillard Johnson, III, lead attorney for the hospital, declined to comment or provide details on the settlement.

“I’m glad this is about to be resolved,” said the former Knox County Hospital’s CEO, Ray Canady. “We can now stop looking back and begin looking forward to everything the new hospital management has to offer for Barbourville ARH.”