Alpharetta-based Care Logistics, a provider of hospital management software and logistics services, is suing two Ohio health care networks, claiming they have cost the company millions of dollars after backing out of several business agreements.
In a case filed this week in U.S. District Court in Atlanta, Care Logistics is seeking at least $12 million in damages from the networks, Catholic Health Partners of Cincinnati and Mercy Health Systems of Toledo, plus additional compensation.
Care Logistics said the lost business has resulted in a diminished value of its business “in excess of $50 million,” according to the lawsuit.
The Ohio companies said they had not seen the suit and had no immediate comment. A federal judge denied Care Logistics’ motion to have its lawsuit sealed.
According to the lawsuit, Care Logistics entered into a 2008 agreement that allowed MHS to license its patient logistics software, which allows hospitals to coordinate patient care, such as bed availability, housekeeping workflow and patient transport. Eight MHS and CHP hospitals were licensed to use the software, the lawsuit says.
To accommodate the additional business, Care Logistics said it increased its payroll from 19 in early 2008 to 42 full-time associates by late 2008.
Care Logistics said it then signed a marketing agreement in 2011 with the two Ohio companies, using them as client references in exchange for a share of royalties from additional software licenses.
The Alpharetta company said it had committed more than $37 million in software research and development toward its business with the Ohio companies before the two moved to end their agreement with Care Logistics this past January.
Care Logistics also accuses the Ohio companies of interfering with current and prospective customers and making damaging comments about the Alpharetta company.
