Court warned of 'catastrophic' results if medical records firms close

The High Court has been told today that if a group of software companies that manage nearly 10 million medical records ceased trading, the results for patients would be catastrophic.

An interim examiner was appointed to the insolvent IMS Computers Ltd, IMS Holdings Ltd based in Glenageary, Co Dublin - and UK registered Integrated Medical Solutions Ltd earlier this month.

An interim examiner was appointed earlier this month to IMS which manage nearly 10 million patient records in Ireland and the UK.

The court heard the software controls operating theatre schedules and bed spaces for hospitals, and that the results for patients would be catastrophic if the companies were to close.

A potential investor has agreed to inject €675,000, but has refused to put up the money unless a petition to confirm the appointment of an examiner was heard today.

However, the group's parent company DSG, which is in administration in the UK, objected to the petition going ahead and said an Armageddon situation was being put to the court.

Counsel Rossa Fanning said that while he said he was not alleging fraud, time was needed to investigate possible irregularities.

Mr Justice Gerard Hogan said that he was in a quandary, but noting patient safety issues, he has decided to allow the petition go ahead this afternoon as the lesser of two evils.