...Title
Dept/ Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Settlement of Civil Litigation
Docket No.: Not Applicable
Claimant: Nextgen Healthcare, Inc., 1551 Emancipation Hwy, Suite 200, Unit 1256, Fredericksburg, Virginia 22401-4683
Claimant's Attorney: Not Applicable
Settlement Amount: $66,971.99
Funding Source: Budget 2025/Department of Health and Community Wellness/NW051-G25 Account# H250N Budget Ref: B2025
Additional Information:
This Pre-Litigation Settlement Agreement resolves all outstanding invoices for Nextgen Healthcare, Inc., for additional configurations and cost for Nextgen's staff travel.
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WHEREAS, the City's Department of Health and Community Wellness (DHCW) provides primary medical and dental health services to all Newark residents; and
WHEREAS, the Federally Qualified Health Center used a contracted vendor Nextgen Healthcare, Inc. for providing an electronic medical records management system, which offers for support, maintenance and enhancement software, resolution 7R5-t June 7, 2023 and resolution 7R5-y March 19, 2025; and
WHEREAS, the Nextgen Healthcare, Inc.'s contract terminated on June 30, 2025; and
WHEREAS, Nextgen Healthcare, Inc., submitted invoices for additional configurations and staff travel which is necessary for clinical flow. The approval and assemble services to the DHCW for an amount not to exceed Sixty-Six Thousand Nine Hundred Seventy-One Dollars and Ninety-Nine Cents ($66,971.99), (the "Claim") to cover the period in which it did not have a contract and was completing the configuration and staff training services; and
WHEREAS, the Director of the DHCW confirmed that the City received in the benefit of EMR configurations and staff training and is requesting the outstanding amount be paid by a Pre-Litigation settlement (Memorandum to Corporation Counsel, attached hereto and made a part of); and
WHEREAS, to avoid the costly expense of litigation, Nextgen Healthcare, Inc., and the City's Corporation Counsel (the "Parties") desire to amicably resolve this matter prior to the commencement of any litigation and have agreed to settle the matter of payment by the City in the amount of Sixty-Six Thousand Nine Hundred Seventy-One Dollars and Ninety-Nine Cents ($66,971.99), (the "Settlement Sum"), in exchange for Nextgen Healthcare, Inc, execution of this Pre-Litigation Settlement Agreement and General Release, as a full and complete release of the Claim, including any claims for attorney's fees.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark and/or his designee, the Corporation Counsel are hereby authorized on behalf of the City of Newark, to enter into, execute and accept the terms of the Settlement Agreement and Release (the "Agreement") between the City and Nextgen Healthcare, Inc., 1551 Emancipation HWY, Suite 200, unit 1256, Fredericksburg, Virginia 22401-4683.
2. Pursuant to the Agreement, the City shall pay Nextgen Healthcare, Inc., the settlement sum of Sixty-Six Thousand Nine Hundred Seventy-One Dollars and Ninety-Nine Cents ($66,971.99), to be paid, via check made payable to: Nextgen Healthcare, Inc., for providing configuration and staff training.
3. Attached hereto is a Certification of Funds - Business Unit NW051-G25 Account# H250N, Budget Ref: B2025; which encumbers the funds for the purpose set forth hereinabove. The Director of the Department of Finance is hereby authorized and directed to issue a check in the amount Sixty-Six Thousand Nine Hundred Seventy-One Dollars and Ninety-Nine Cents ($66,971.99), made payable to: Nextgen Healthcare, Inc., 1551 Emancipation HWY, Suite 200, Unit 1256, Fredericksburg, Virginia 22401-4683, upon receipt by the Corporation Counsel of all settlement documents deemed necessary.
4. The Settlement and Resolution does not admit nor should it be construed as an admission of liability or violation of any law, statute or regulation or a breach of any duty by the City of Newark, its agents, officers and/or employees whatsoever and is entered into based upon recommendations of the Corporation Counsel and to eliminate all risks and future litigation costs.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark, and/or his designee, the Corporation Counsel to avoid potential litigation and resolve this matter by entering into and executing this Agreement with Nextgen Healthcare, Inc., 1551 Emancipation HWY, Suite 200, Unit 1256, Fredericksburg, Virginia 22401-4683 and paying the settlement sum of $66,971.99, in return for a full Settlement Agreement and Release by Nextgen Healthcare, Inc.