Hospital software lawsuit settled

February 13, 2016

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.

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