THE HIGH Court has appointed an interim examiner to a group of software companies that maintain and store medical records of almost 10 million patients in Ireland and the UK.
The firms, who claim their insolvency is due to difficulties encountered by their main shareholder, sought the protection of the court in order to prevent “serious safety issues” for patients as well as avoiding disruption and administration problems at hospitals.
Yesterday Ms Justice Elizabeth Dunne approved Eamonn Richardson of KPMG as interim examiner to three related firms: Irish Medical Systems Holdings Ltd; Irish Medical Systems Computers Ltd, both of Clara House Glenageary Park, Glenageary, Dublin; and UK-registered Integrated Medical Solutions Ltd.
The companies, which have 66 employees in Ireland, the UK and Romania, provides software and related services under the name IMS Maxims.
The judge said she was satisfied about making the appointment after being informed that an independent financial report said the companies have a reasonable prospect of survival as going concerns. The judge made the matter returnable to later this month.
In the petition seeking Mr Richardson’s appointment, brought by the companies and their directors, the court heard that the firm provides, manages and services software for public (HSE and NHS) and private hospitals in Ireland and the UK.
The court heard that the firms store medical records of some 9.9 million people. If they were to fail, it claims those people would be seriously prejudiced.
“Serious disruption would ensue if the firms were liquidated. It would not be easy for another supplier to take over and integrate into the software that the firms provide,” the report noted.
The court also heard there would be a deficit of €12 million in the event that the firms were wound up. However, if allowed to continue as going concerns their assets over liabilities were worth almost €15 million.
The companies are insolvent and unable to pay their debts because of problems being experienced by their main shareholder, UK-based Daresbury Service Group, counsel for the companies, Gary McCarthy, said.
That firm is the subject of winding up proceedings in the UK.