ACS enters negotiations for Tenn. Medicaid support

Tennessee plans to award a new contract for Medicaid system management to Affiliated Computer Services Inc. that may be worth as much as $156 million over five years.

Under the contract, ACS of Dallas will be responsible for data management, various systems modifications and daily operations of the TennCare Management Information System. TennCare is the state's managed-care Medicaid system.

ACS will assess TennCare business processes and work with state officials to make recommendations for improvements. One of the first enhancements the company will undertake is to develop an enterprise project management office.

ACS' partner on the project is Zycron, a Nashville-based, minority-owned information technology staffing and outsourcing company.

TennCare serves 1.2 million state residents through a network of contracted, managed care companies. The program serves those who are eligible for Medicaid assistance, such as low-income children and families, persons with disabilities and persons requiring care in nursing facilities.

ACS ranks No. 58 on Washington Technology's 2007 Top 100 list of the largest federal government prime contractors.