A federal lawsuit filed by a Pennsylvania-based billing and data processing business for an alleged breach of contract was dismissed in a Feb. 13 hearing.
Alpha Financial Solutions was seeking more than $1.6 million damages against Wheeling Hospital. The lawsuit said Alpha Financial Solutions provided the hospital with data processing, billing and management services since 2003. The company filed the lawsuit Feb. 3.
The lawsuit claimed hospital officials did not provide Alpha with written notice after informing Alpha management that the processing agreement would be terminated.
The lawsuit also claimed the hospital did not have the authority to take Alpha's computers, which Alpha claimed contains protected health information unrelated to Wheeling Hospital.
In addition, Alpha also claimed Wheeling Hospital solicited Alpha's employees.
According to the motion in opposition to a temporary restraining order, Wheeling Hospital said it is not true that Alpha was not given notices of its breaches to the agreement.
The motion listed several meetings that occurred during the month of December where both parties discussed "deficiencies in plaintiffs' performance." Hospital officials also say they discussed the probability of terminating the agreement.
In a Dec. 30 meeting, hospital officials met with Alpha management and said the agreement would be terminated. Hospital officials later agreed to terminate the agreement Jan. 31, the motion stated.
According to Wheeling Hospital's motion, Alpha's attorneys gave notice of a demand for mediation for the issues and designated a mediator. However, Alpha filed a complaint a few weeks later.
In the Feb. 13 motion hearing, U.S. District Judge Frederick Stamp Jr. ruled that such mediation was a "precedent to filing the civil action." Stamp ruled the action dismissed without prejudice pending mediation.
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