HP Subsidiary Loses Bid To Continue Managing Medi-Cal Data System
On Wednesday, state officials rejected an appeal by Hewlett Packard subsidiary HP Enterprise Services to continue handling the state's Medi-Cal payment system, the Sacramento Bee reports.
The Department of Health Care Services instead will award the $1.6 billion contract to Affiliated Computer Services.
HP Enterprise Services acquired the contract two years ago when it bought Electronic Data Systems, which had held the contract for 20 years.
State officials said ACS is expected to retain the 1,200 EDS employees currently assigned to the contract.
The federal government must review the finalized agreement between ACS and the state, a process that state officials predict will be completed by May 1. Officials expect the project to achieve full implementation nine months later.HP said it is reviewing the appeal. Any additional appeals would require judicial action (Calvan, Sacramento Bee, 3/4). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.