Health Care IT Company McKesson Files Suit Against Connecticut Insurer
San Francisco-based health care information technology firm McKesson is seeking more than $1.1 million in damages for an alleged breach of contract by Trumbull, Conn.-based Oxford Health Plans, the Connecticut Post reports. In a civil suit filed in Superior Court in Bridgeport, Conn., McKesson claims that the regional insurer shut down McKesson's access to a computer system and did not pay its bills. Oxford licensed a McKesson consumer health care management system in November 1994, but the system was not Y2K-compliant. Oxford chose not to purchase a new system, according to the complaint. After the system failed to recognize the year 2000, Oxford said McKesson was in "material breach" and said that that it would "wind down" its relationship with McKesson, the Post reports. But McKesson maintains that it fixed the system and subsequent problems were the result of faulty settings. McKesson also said that Oxford breached its contract later in 2000 when it blocked McKesson's modem access and failed to pay bills. McKesson is seeking a balance of more than $897,152 and interest of more than $292,939 (Dawkins, Connecticut Post, 6/13).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.