PLANO, Texas, July 22 /PRNewswire-FirstCall/ -- EDS and Blue Shield of California (BSC) today announced they have expanded their 35-year long-term relationship with two new agreements valued at a total of $70 million. One agreement calls for EDS to provide new electronic claims processing services, and the second extends application development services including programming, testing, analysis and project management.
With over 40 years experience in the industry, EDS is the leading healthcare IT company in the U.S. The company currently provides services to 250 healthcare clients including the U.S. and state governments and is the largest processor of Medicaid claims with over one billion claims processed annually in 16 states.
This new claims capability allows EDS to electronically process an additional 3.5 million paper medical and dental claims submitted annually by 2.7 million Blue Shield members. According to this six-year agreement, EDS will process these claims in its world-class, multi-client service center in Chico, California, which will lower data entry costs by more than 50 percent and improve data entry quality for Blue Shield of California.
“Throughout our relationship, EDS has proven that technology can help us lower costs and enhance customer service in this area,” said Dave Bowen, CIO for Blue Shield. “We believe that converting our current formats into electronic data will improve the data quality and processing efficiency of our claims operation and reduce overall administrative expenses.”
“We’re also making every effort to determine whether this will have an impact on our personnel and evaluating options to develop and support transition considerations where appropriate,” added Bob Stephenson, Blue Shield director of operations.
EDS has also agreed to provide extensive application development work for Blue Shield of California’s portfolio of applications through 2007. Through the years, EDS’ strong track record in applications development support has enabled Blue Shield of California to effectively support new product launches, new business growth and enhanced automation to support its operations and comply with federal and state legislative mandates.
“As a long standing, trusted business partner, EDS has the scalable capabilities and resources necessary to provide the most cost-effective service and delivery solutions for this valuable client,” said Mark J. Roman, EDS Global Healthcare Industry practice leader. “EDS is prepared to service the company’s fluctuations in demand for claims processing and applications development cost effectively and efficiently over time. We have built a long- term, collaborative working relationship with Blue Shield of California over the past 35 years, and appreciate the continuing opportunity to handle these functions.”
EDS currently provides Blue Shield of California with IT services that include mainframe processing, data storage, applications management, imaging and network services as part of a contractual relationship that dates back to 1969.
EDS in the Healthcare Industry
EDS is a leading healthcare IT services provider, ranked No. 2 in worldwide healthcare revenues by Healthcare Informatics, with more than 40 years of dedication to the healthcare industry. EDS employs more than 6,000 healthcare professionals and more than 400 clinicians that focus on the challenges and opportunities facing the healthcare industry. EDS provides a broad range of IT outsourcing, consulting, critical technology, and business process services to Payer, Provider, Government Health, and Life Sciences organizations around the world.
About Blue Shield of California
Founded in 1939, Blue Shield of California is one of the state’s leading healthcare companies. Headquartered in San Francisco, the not-for-profit corporation has more than 2.7 million members, 5,500 employees and more than 20 office locations throughout California. For more information on Blue Shield, visit the company’s Web site at http://www.mylifepath.com/ .
About EDS
EDS provides a broad portfolio of business and technology solutions to help its clients worldwide improve their business performance. EDS’ core portfolio comprises information-technology, applications and business process services, as well as information-technology transformation services. EDS’ A.T. Kearney subsidiary is one of the world’s leading high-value management consultancies. With more than $20 billion in annual revenue, EDS is ranked 87th on the Fortune 500. The company’s stock is traded on the New York and London stock exchanges. Learn more at http://www.eds.com/ .
The statements in this news release that are not historical statements, including statements regarding the amount of new contract values, are forward- looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond EDS’ control, which could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see EDS’ most recent Form 10-Q. EDS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Terry Balluck - EDS (972) 797-8751 terry.balluck@eds.com
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20011004/EDSLOGO-bAP Archive: http://photoarchive.ap.org/PRN Photo Desk, photodesk@prnewswire.comElectronic Data Systems Corporation
CONTACT: Terry Balluck of Electronic Data Systems Corporation,+1-972-797-8751, or terry.balluck@eds.com
