A lawsuit filed by ATRIO Health Plans in Salem for more than $60 million has been moved to U.S. District Court in Eugene. The dispute may be headed back to Marion County, and could even end up in Douglas County.
In the convoluted series of court maneuvers, Optima LLC, a small Roseburg company, represented by Eugene attorney Randy Turnbow, filed a breach of contract suit in Douglas County Circuit Court on Sept. 23, 2018, against ATRIO. The complaint alleges ATRIO did not pay the licensing fee for the 1 1/2 years that were left on a three-year contract when ATRIO canceled the agreement between the two organizations. Optima provides custom software services upon request, under the business name of “inteligenz.” That lawsuit asks for $1.4 million.
The Douglas County suit claims that ATRIO “breached the master software license and technical services agreement” with Optima by failing to make any payments after January 2018.
ATRIO, which was founded in Roseburg and has since moved its headquarters to Salem, alleged in a separate suit filed in Marion County in May that Performance Health Technology of Salem, a company that provides claims processing and related services, breached the contract and provided negligent services. In that same suit, ATRIO claims that Optima provided defective services.
ATRIO claims in the suit that it lost nearly $29 million, and that the Centers for Medicare and Medicaid was overbilled by almost $31 million, coming from the contractor’s errors. which resulted in billing Medicare for patient services that are not covered. The lawsuit alleges that Optima’s software failed to catch numerous errors by PH Tech.
PH Tech processes information to send to the Centers for Medicare and Medicaid for bills and claims.
On May 24, the Marion County case was moved to federal court in Eugene. But a motion has since been filed by ATRIO to move the case back to Marion County Circuit Court in Salem. However, a ruling on that motion is not expected for several weeks.
Cascade Comprehensive Care Inc. of Klamath Falls, Mid-Valley IPA Inc. of Salem, and Umpqua Health LLC in Roseburg are listed as co-plaintiffs in that suit.
Meanwhile, Turnbow has filed a motion for Optima asking to dismiss ATRIO’s claims arguing that the Douglas County case takes priority because it was filed first. He also plans to file for summary judgement on the claims of three shareholders in federal court. If the case gets sent back to Marion County, that court will decide those issues.
A hearing on the Douglas County case in Roseburg is set for Tuesday in Judge Francis Burge’s Douglas County Circuit Courtroom.