Novation, which leverages hospitals’ combined buying power to get better prices on medical goods, sent two employees to audit Ameridose on July 15 and terminated its contract, the lawsuit said.
‘‘Novation has determined that Ameridose does not meet the quality systems requirements needed to maintain a Novation agreement,’’ Novation told its members in an Aug. 2 newsletter, according to the lawsuit.
Ameridose strongly objected to the allegations and said in its defamation lawsuit that the Novation auditors were unqualified and made false and misleading statements. Ameridose also said it had been audited in recent years by several other organizations that determined its quality control system ‘‘meets or exceeds their high quality standards.’’ Ameridose is regulated by the U.S. Food and Drug Administration.
The lawsuit ended in a confidential settlement Sept. 24.
Paven, the Ameridose and New England Compounding Center spokesman, said Wednesday in his email that the ‘‘suit involved contractual commercial issues between the companies that have since been resolved.’’
A statement from Novation said that while it ‘‘vigorously disputed each and every claim made in the lawsuit, the parties ultimately agreed to settle the lawsuit.’’
Follow Mohr at http://twitter.com/holbrookmohr .