ACS to lead rollout of Texas Medicaid program

Affiliated Computer Services Inc. signed a contract amendment to support the statewide rollout of the Texas Medicaid Primary Care Case Management program, the company said today.

The amendment covers a three-year rollout period for the program, known as the Texas Health Network, and is worth $86 million. It amended the company's current contract with the Texas Health and Human Services Commission for program services in 37 counties. The contract runs to Aug. 31, 2007, and may be extended by two one-year options.

The amendment is a result of legislation passed last year by the state legislature, which requires the Health and Human Services Commission to provide Medicaid acute care services through the most cost-effective managed care models. The commission decided to expand the health network into counties currently operating under the traditional fee-for-service Medicaid program, bringing the total number of participating counties in the Primary Case Management program to 200.

Under the contract, ACS will provide administrative support for the program's statewide introduction, including recruiting, enrolling and credentialing doctors, as well as educating providers and members about primary care case management. ACS has been the state's administrator for the Medicaid Primary Care Case Management program since 1997.

ACS supports 29 states with government healthcare services programs, including processing more than $42 billion in payments.

Based in Dallas, ACS provides business process and information technology outsourcing solutions to government and commercial clients. The company employs more than 43,000 people and had 2003 revenue of nearly $3.8 billion. It ranks No. 38 on Washington Technology's 2004 Top 100 list of federal prime contractors.