HP wins $70M contract renewal to manage Medicaid system

In the company's second Medicaid contract extension in about three weeks, Hewlett-Packard Co. has signed a $70 million contract to continue work with Arkansas' Medicaid IT system, according to a news release.

HP Enterprise Services will manage and try to improve the compliance and service of the state's Medicaid management information system (MMIS) under a contract with the Arkansas Human Services Department's Division of Medical Services.

“In preparation for the regulatory challenges ahead and an increasing need for our services, we are focused on streamlining costs and using technology to help ensure the delivery of high-quality medical services to our beneficiaries,” said Eugene I. Gessow, director of the Division of Medical Services of the Arkansas Department of Human Services.

The long-term service agreement is a 27-month contract that will prepare the state for the regulatory changes such as health care reforms such as the American Recovery and Reinvestment Act's HITECH electronic health record program, federal HIPAA 5010  requirements and the alignment of Medicaid expenses with revenue from the state.

Prior to the contract extension, HP’s services included online enrollment, real-time claims processing, pharmacy services and support of the statewide immunization registry. 

“As demand increases and resources become scarcer, the need for efficiencies and innovation in MMIS hits a critical note,” said Susan Arthur, vice president of HP's Enterprise Services Health and Life Sciences division. 

HP is the nation’s largest provider of Medicaid and Medicare process management services, administering $95 billion in benefits a year. 

Hewlett-Packard Co., of Palo Alto, Calif., ranks No. 7 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.