Nacogdoches (Texas) Memorial Hospital terminated a $20 million contract with Cerner this week after experiencing several previous project delays, according to a July 29 Daily Sentinel report.
The hospital accrued about $20 million in debt from the medical records management contract, which it settled for $2.78 million and a $1.17 million termination fee. Nacogdoches Memorial entered the partnership with Cerner before the hospital’s previous CEO Scott Street resigned in 2017, according to KTRE news.
Nacogdoches Memorial’s attorney Deborah Williamson, who works for debt reorganization firm Dykema, told the Daily Sentinel that she had been trying to renegotiate the contract with Cerner for months but the EHR vendor ignored her requests.
The hospital had delayed finishing its Cerner EHR system several times, most recently until this year or later. While Nacogdoches Memorial will not move forward with the new EHR system, it will continue using its Sorian EHR system, which Cerner acquired as part of its Siemens Health Services acquisition in 2015.
“Nacogdoches Memorial Hospital remains a valued client and partner,” a Cerner spokesperson said in an emailed statement to Becker‘s. “We look forward to continuing to work with them. While the hospital and Cerner reached an agreement to end one part of their contract, the hospital will continue to use Cerner solutions across their health system.”
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