EDS snares Massachusetts Medicaid system deal

EDS Corp. has won a seven-year, $48 million contract from the state of Massachusetts to implement and maintain a new Medicaid management information system, the company announced today. The contract has four option years.

Under the contract, EDS of Plano, Texas, will replace the current state-run Medicaid system with a new Web-based application constructed to use the state's shared infrastructure. This infrastructure includes various shared services, such as enterprise identity management and electronic payments.

The new system will provide the core technology platform for the state's Medicaid program and a number of other program and technology requirements. It will support the consolidation of health records, permit efficient implementation of new program controls and provide the flexibility necessary to create new programs.

Earlier this year, EDS signed new Medicaid contracts in Wisconsin and Rhode Island. With the latest award, EDS now has Medicaid administrative services contracts in 18 states.

EDS has more than 132,000 employees and annual sales of $20.6 billion. The company ranks No. 6 on Washington Technology's 2005 Top 100 list, which measures federal contracting revenue.