Physician and hospital software vendor Allscripts has withdrawn its lawsuit filed in December against New York City Health and Hospitals Corp. after the delivery system awarded an electronic health records contract worth more than $300 million to Epic Systems Corp.

Allscripts has issued the following statement on the legal action, first reported by HIStalk: “Allscripts Healthcare Solutions, Inc., has discontinued its legal action against the New York City Health and Hospitals Corporation regarding the award of the Integrated Clinical Information System contract and looks forward to having the opportunity to work with HHC on other matters in the future. The NYC Health and Hospitals Corporation is pleased that Allscripts has withdrawn the lawsuit.”

Allscripts in October 2012 filed a protest of the award, arguing the final bids differed by only $4 million but its system’s total cost of ownership was hundreds of millions of dollars less. On Dec. 13, the company filed suit arguing that HHC’s award “for myriad reasons, is arbitrary, capricious, an abuse of discretion, and lacks a rational basis.”

Amid industry derision, Allscripts on Dec. 17 issued an explanation for its lawsuit. Among its arguments, the company said “In these times, it is critical that public procurements be awarded through the conduct of fair competitions that objectively assess the merits of competing proposals and document a reasonable basis for the decision.  From all available information, the HHC award to Epic is lacking in all of these respects.”

Two days later, the Allscripts board terminated CEO Glen Tullman and President Lee Shapiro.

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