ACS and Georgia to settle healthcare system dispute

Affiliated Computer Services Inc. and the Georgia Department of Community Health have tentatively settled a dispute involving a health claims processing contract.

Under the agreement, ACS of Dallas would pay Georgia $10 million in penalties for delays and problems with the contract.

Meanwhile, the Georgia Department of Community Health would pay ACS about $9 million of $13 million in outstanding system development invoices, with the remaining $4 million to be paid in stages as certain system functions are delivered by ACS. The state would escrow an additional $11.8 million pending final certification of the system by the Center for Medicare and Medicaid Services.

The tentative agreement also would terminate phase II of the project, which was worth about $7.5 million. That phase covered a health claims payment system for state employees with the Medicaid payment system, and the membership enrollment management system.

The entire contract is worth about $351 million and was awarded to ACS in 2001.

Tim Burgess, the Department of Community Health commissioner, said the settlement would allow the state and contractor to focus on providing the best service possible to Georgia health providers and citizens who rely on the health claims system.

"There are still many operational challenges ahead of us with respect to implementing Phase I, but we and ACS are committed to working closely with the provider community to meet those challenges," he said.

About the Author

William Welsh is a freelance writer covering IT and defense technology.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

I agree to this site's Privacy Policy.