Doctors Who Sued EHR Company Win First Round

Neil Chesanow

Disclosures

March 04, 2013

In This Article

Accusations of Fraud

In addition, "Allscripts made public, fraudulent statements throughout 2011 about how well the integration of various software programs, including the MyWay software, was proceeding [in meeting meaningful-use requirements], without ever acknowledging known problems with the software," the complaint alleges. As a result of these false statements, an investor filed a class-action lawsuit against Allscripts in May 2012, alleging that the company made false and/or misleading statements in violation of securities laws.

None of the promises made to him were kept, Joseph maintains. Particularly galling was the lack of a pain management module that he was promised, a key reason why he purchased the MyWay EHR. When it arrived, "it was for orthopedics!" he exclaims. "That's completely different from what we do. It's useless to us."

Four months later, in October 2012, Allscripts dropped MyWay from its product portfolio, leaving Joseph and 5000 other customers who had purchased the EHR adrift. "They lied to me to get me to buy the program, and then once we bought it it didn't work as promised," Joseph fumes. "Now they've sunset it so it's never going to work. Nothing about it was as advertised."

After MyWay was retired, Allscripts offered its MyWay customers a "free" upgrade to the firm's Professional EHR, a more complex product designed for larger practices, with features that most small practices don't need, the complaint alleges. Because the MyWay and Pro EHRs were built on different platforms, migrating patient data from one to the other would be an immensely complicated and costly affair, the complaint alleges, with the doctors expected to foot the bill.

Moreover, "upgrade" generally means an improvement to software that one already owns, not a total replacement. "The doctors feel that it's not an upgrade to switch to Pro," says Adam M. Moskowitz, an attorney at Kozyak Tropin & Throckmorton in Miami and a co-counsel in the suit.

"The doctors contend that the Pro product is an entirely new, separate product. They will need to go through new training that costs tens of thousands of dollars in lost staff time and billable time and all the other costs involved to implement the new software. It's not an easy transition. It's labor-intensive. It is not satisfactory to these doctors," says Moskowitz.

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