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Allscripts Sues NYC Health and Hospital System Over Contract Award to Epic - EHR Vendor Playing the Same Game as Health Insuranc

Posted Dec 17 2012 4:47pm

I don’t funny understand how this is going to help as it’s not going to make them look any better in the eyes of the decision makers.  There’s more than just cost that comes into these contract awards by all means and this seems to be the card that is being played here.  We can all go back to the 1st quarter results that came in and again I said they didn’t have their code ready with the integration process with the Eclipses system they acquired.  I have seen this in healthcare and other industries were sales are projected on anticipated sales and you can’t hurry the coders either.  If the cake is not baked you can’t frost and serve it.

When you compare it to Epic, and again I’m looking at history here and technologies with no favorites to either side, but Epic has all their development of their system pretty much in house, where as Allscripts has grown by acquiring other companies and merging technologies.  When you have it all in house and can go back and reference anything from years back and have all the code, there’s something to be said for that.  Way back when I was writing I had to go back at times and what I did was very simple compared to today’s systems, but it was there.  When you have code written outside your concern that you bought, a little different story.  That doesn’t mean that the integration is not good but like I keep telling everyone…

”The short order code kitchen burned down years ago and there was no fire sale”

This not only applies here but all over in IT infrastructure.  Here’s a post from a couple days ago where I took the time to imagetranslate what was in the news to what had to happen with the mechanics…you don’t get that anywhere else but I’m just trying to help the layman understand what some of this means.  Sure people edit and find things to improve, but that process is a heck of a lot faster than the processes needed to fix it or develop new code.  Wake up.  At the link below, GAO has done its work and now CMS has to go back and do the extensive time consuming, dollar consuming code fixes.  It is what it is. 

First of all we had the complaint filed and now it becomes a lawsuit. 

This somewhat parallels some of what I see with insurance carrier contracts and here United filed suit and sued the government as they wanted the Tri-Care contract in the west, so what gives here with Allscripts…same thing?  It makes for a lot of legal fees for one and makes some lawyers kind of rich.  This too is yet another battle of the algorithms (software) and price. 


One other small difference here is that the CEO of Epic, and granted she has made a lot of money, wrote the original code for Epic and that is something that unless the other company has done the same has huge value.  Not only does the company have all the code from day one, the CEO has “hands on” experience here and there is so much to be said there as she has IT knowledge that any old CEO for hire won’t have. 

As a matter of fact most CEOs today get kind of get lost as they try to “run” companies with just using business tactics but lack the “hands on” experience to know the IT and code mechanics, and thus so Epic has an advantage there and those purchasing systems with IT backgrounds know it.  You do have to have 500 beds before Epic will talk with you as that is their market.  I don’t know how a lawsuit is going to change this opinion with the folks that chose Epic as it was more than money that went in to this decision as their necks are on the line to make the best decision. 

So I don’t know where this lawsuit will go but I said a while back the company would do well, technology wise to hook up with Caradigm as the company they bought (Eclipsys) already had technologies working with Amalga and Caradigm sells it today.  Caradigm is the new company that GE and Microsoft formed earlier this year and besides that they don’t have an EMR to sell either…so…think about it. 


These are just my opinions here and again I don’t know how this lawsuit is going to make a big change as the technologies are different between the two companies and once you are kicked out doesn’t a little sugar do a little more than vinegar?  This is a wild one but again maybe seeing it be successful for big insurance companies doing lawsuits maybe they just decided to give a shot and see what sticks, lot of that out there today.  BD



Allscripts Healthcare Solutions Inc. (MDRX), a provider of electronic medical records, sued New York City Health and Hospitals Corp. over a $303 million contract given to another company.

The complaint was filed today in New York State Supreme Court in Manhattan over a contract for computer hardware and software awarded this year to Epic Systems Corp. , a closely held medical-software provider based in Verona, Wisconsin .

The award is “arbitrary, capricious, an abuse of discretion and lacks a rational basis,” according to the complaint.

http://www.bloomberg.com/news/2012-12-13/allscripts-sues-nyc-health-hospital-over-contract-award.html

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