FRANKFORT, Ky., July 18 /PRNewswire-FirstCall/ -- EDS , the recognized leader in providing healthcare support to state governments, announced that it has been awarded a contract valued at $170 million, if all options are exercised, to implement a new state-of-the-art Medicaid Management Information System (MMIS) for the Commonwealth of Kentucky.
The agreement spans five years and nine months and includes two one-year options and a 19-month implementation period during which EDS will take over and operate the state's existing legacy Medicaid system. This contract was signed in March 2005 and was reflected in the company's previously reported first quarter new business signings. The new MMIS will serve Kentucky Medicaid's more than 691,000 members and 35,000 health care providers.
The new system will be based on EDS' cutting-edge interChange Health System, which already has been successfully installed in a number of other states, including Oklahoma, Kansas and Pennsylvania.
"EDS was awarded the contract after a highly competitive procurement that will result in the significant modernization of the Kentucky Medicaid program," said Commissioner Shannon R. Turner of the Department for Medicaid Services, the state agency responsible for administering Kentucky's Medicaid programs. "We look forward to working with EDS to implement a truly state-of- the-art Medicaid system that gives us greater access to information and helps us to make more effective policy decisions and improve the quality of care for our members."
EDS will provide a complete suite of Medicaid fiscal agent services, including system development and maintenance, financial services, real-time claims adjudication, decision support/data warehouse, call center services, mail room, data entry and provider training. The new system will allow Medicaid providers to submit claims in a variety of electronic formats, including secure Internet connection, and deliver more timely and accurate claims adjudication.
"We are proud to have been selected by Kentucky to support the Commonwealth's far-reaching Medicaid program," said Barbara Anderson, vice president of EDS State and Local Government Solutions. "We look forward to working with the Commonwealth of Kentucky and sharing more than 30 years of Medicaid experience."
The contract returns EDS to Kentucky as the state's Medicaid services provider after a 10-year hiatus and raises to 19 the number of states to which EDS provides Medicaid services.
EDS is the nation's largest provider of Medicaid and Medicare process management services, processing more than 1 billion health care claims and administering more than $100 billion in benefits a year nationwide. Within the Medicaid and Medicare environments alone, EDS touches more than 56 million lives and is the most experienced claims administrator, with more than 35 years of experience.
About EDS
EDS is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry more than 40 years ago. Today, EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. With $20.7 billion in 2004 revenue, EDS is ranked 95th on the Fortune 500. 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: Bill Ritz - EDS 703-742-1307 bill.ritz@eds.com
Electronic Data Systems CorporationCONTACT: Bill Ritz of Electronic Data Systems Corporation,+1-703-742-1307, or bill.ritz@eds.com
Web site: http://www.eds.com/