Combine years of delay, ever-changing rules and requirements, state and federal red tape and a once-mighty company now in deep financial trouble. What do you get?
In California’s case, a $179 million computer modernization project that has to be junked.
The project, which went to bid in 2007 and still is far from completion, was to process claims for Medi-Cal, the state’s health-payment program for low-income residents.
It finally was put to rest this week when the state Department of Health Care Services announced a legal settlement with Xerox Corp., the project contractor, under which Xerox will pay the state approximately $120 million. (The state had paid Xerox $9 million so far, $8.1 of it with federal funds.)
That means Medi-Cal’s existing computer system — creaky, patched-together and, decades old — will continue to operate for however long it takes the state to contract out and build a replacement.
According to the settlement, Xerox will continue to run the existing system until 2019.
The health care services department is putting a bright face on the project’s demise calling it an “opportunity” to reevaluate current needs, it in a press release issued Monday. A fresh start, it went on, will ensure “modern, robust and sustainable system.”
The department noted California’s not the only state with such
Article source: https://health.einnews.com/article/325496073/vUnZwV-zzu1qalWY?ref=rss&ecode=uiQ1mLaH2KVPSS4e