LINCOLN- The State of Nebraska has now paid $11 million in delinquent bills to a state contractor who provides critical health care data to doctors and hospitals.

CyncHealth, a LaVista-based statewide Health Information Exchange operator, hadn't been paid since early this year for its $14 million-a-year contract.

The lack of payment from the State prompted a group of hospitals and healthcare administrators who use the critical data to implore the Nebraska Department of Health and Human Services to fulfill its contract and avoid threatening the flow of essential data.

Nebraska Methodist, CHI Health, Nebraska Medicine, and Children's Hospital were among the institutions imploring the Department.

However, last week both the state and CyncHealth officials confirmed that the past-due bills were paid.

"We're not going to have to lay off any people," said Jamie Bland CyncHealth's president and CEO, "We can continually deliver the data to the providers."

The firm, which employs around 78 workers, had to borrow money and was unable to pay some subcontractors because of the lack of payment from the state.

State officials blamed the lack of payment on a change in federal Medicaid programs that funded 90%-100% of the costs of the Health Information Exchange and a prescription drug monitoring programs run by CyncHealth.

Department of Health and Human Services spokesman Jeff Powell said the agency is using leftover funds appropriated to the department's administrative budget to pay the contract.

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