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What colorful method does Claire Miley use to keep up with the latest healthcare regulations as they relate to proposed transactions? Find out more>

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On December 1, 2016, Parker Hannifin Corporation and CLARCOR Inc. announced that the companies have entered into a definitive agreement under which Parker will acquire CLARCOR for approximately $4.3 billion in cash, including the assumption of net debt. The transaction has been unanimously approved by the board of directors of each company. Upon closing of the transaction, expected to be completed by or during the first quarter of Parker’s fiscal year 2018, CLARCOR will be combined with Parker’s Filtration Group to form a leading and diverse global filtration business. Bass, Berry & Sims has served CLARCOR as primary corporate and securities counsel for 10 years and served as lead counsel on this transaction. Read more here.

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Securities Law Exchange BlogSecurities Law Exchange blog offers insight on the latest legal and regulatory developments affecting publicly traded companies. It focuses on a wide variety of topics including regulation and reporting updates, public company advisory topics, IPO readiness and exchange updates including IPO announcements, M&A trends and deal news.

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Operating Room

Health IT Software Vendor Disputes

Helping hospitals fight against defective software from health IT vendors

Hospitals and health systems have never before been so dependent on Healthcare Information Technology (HIT) systems. Seamless patient billing, patient accounting and EMR software is key to 21st-century healthcare – and faulty software can cause not only significant damages to the hospital’s revenue, but a hefty cost of deinstallation.

When software fails, hospitals often believe one-sided contracts shield the vendor from liability. Bass, Berry & Sims Member Michael Dagley and team fight for hospitals in health IT vendor disputes – recently winning more than $100 million on behalf of a health system over a defective patient accounting system.

Hospitals can't afford a failed health IT software implementation or blown conversion. The stakes are too high. From ensuring contracts with vendors are fairly arranged to litigating a software dispute, Michael Dagley and other Bass, Berry & Sims attorneys are ready to assist with health IT software vendor liability.

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As the use of health information technology (HIT) continues to grow in importance to hospitals, health systems and other provider organizations, disputes between healthcare organizations and IT vendors are becoming more common. When IT vendors fail to deliver on their promises, it is the healthcare providers who sustain the financial and reputational damages. Consider these recent examples:

  • A Florida hospital that is negotiating a long-term lease with national hospital company HCA had to lower its asking price by $12.5 million because of an HIT contract that HCA believes is too costly.
  • In Georgia, a hospital CEO lost his job after a failed EHR implementation.
  • IT vendors have historically dictated the contract terms to hospitals and health systems but that is now changing.

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