Virginia firm bid for NC Medicaid system accepted

RALEIGH, N.C. (AP) - A Virginia firm has landed the government contract to complete an overhaul of North Carolina's Medicaid billing system.

By: Associated Press | WNCT
Published: January 06, 2009

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RALEIGH, N.C. (AP) - A Virginia firm has landed the government contract to complete an overhaul of North Carolina's Medicaid billing system.

The News & Observer of Raleigh reported Monday that state Department of Health and Human Services chose Computer Sciences Corp. over current billing provider Electronic Data Systems.

Department official Angie Sligh said the decision came down to price. Computer Sciences bid $265 million for the project, compared to $287 million by Electronic Data Systems.

The deal is among the largest monetary contracts in North Carolina state government. The federal government pays for 90 percent of the cost. Computer Sciences would build the system and run it for four years beginning in 2011.

Electronic Data Systems has until Friday to appeal the state's decision. The company has run the billing system since the 1970s.

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Information from: The News & Observer, http://www.newsobserver.com

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