New York Comptroller Thomas DiNapoli has approved Norwalk, Conn.-based Xerox's $565 million contract to build and run the state's new Medicaid computer system, according to a Bloomberg report.
Competing bidder Palo Alto, Calif.-based Hewlett-Packard and Falls Church, Va.-based Computer Sciences, which currently operates the network for New York's healthcare program, had made protests to overturn the award. However, those protests were denied by the comptroller as he made his decision, the comptroller's office said in a letter sent to the New York Health Department Friday. The contract was awarded in May 2014.
The health department "has taken precautionary measures, including its proposed governance and oversight structure, to help prevent and/or manage the types of occurrences that gave rise to the performance issues with Xerox's contracts in other states," Charlotte Breeyear, the comptroller's director of contracts, wrote in the letter, according to the report.
Xerox will have up to 18 months to construct the new operating system, which will help New York's $52 billion Medicaid program move toward a managed-care approach, according to the report, which cites the request for proposals.
More articles on health IT:
78 million will use home health by 2020
To protect identities, doc fix bill requires removal of Social Security numbers from Medicare cards