New Zealand’s i-Health sues iSoft

New Zealand electronic health records developer i-Health is suing UK-based health software firm iSoft for breach of a 2004 sale agreement.

The legal action focuses on iSoft allegedly substantially ceasing development of the HealthViews electronic patient record software it bought from i-Health in early 2004.

It alleges the iSoft Group failed to market the software worldwide and to license it at market price, instead selling it for substantially less than the list price.

Legal papers lodged with the High Court in Auckland also state iSoft “knowingly and deliberately sought to replace HealthViews in major reference and other sites with another of the iSoft Group’s products, Lorenzo.”

According to the UK’s Guardian newspaper the former owner of i-Health is claiming to have lost out on up to NZ$25m (£9.2m) in deferred performance-related payments because iSoft had failed to sufficiently market i-Health’s electronic health records software internationally.

iSoft bought the businesses of i-Health and associated company Galen Group in January 2004 for NZ$1.48m with additional payments over five years of nearly NZ$25m (£9.25m) based on future sales and performance.

The Australian and New Zealand iSoft subsidiaries named in the statement have denied iHealth’s allegations.

A spokesperson for iSoft parent, iSoft Group Plc, told EHI: "We deny all the allegations."

In a statement at the time of the acquisition Richard Craven, then chief executive of iSoft Asia Pacific, said: “Most significantly, this purchase augments iSoft’s product portfolio with i-Health’s proven, web-based Electronic Health Record (EHR) technology."

iSoft is one of two major software suppliers of patient management systems to the New Zealand health sector, counting 18 of the country’s 21 district health boards as clients.