HP Signs $200 Million Medicare Maintenance Contract

Aug 16th, 2010 | By technologynews | Category: Technology

Hewlett-Packard is expanding its federal
government and health care IT services portfolio after signing a new, $200
million contract with the U.S. Centers for Medicare & Medicaid Services to
provide application support and other services.

On
Aug. 16, HP announced it signed the $200 million contract with the CMS. Under
the multiyear contract, HP will provide application support and maintenance
services for Medicare Part B claims processing.

In a statement, HP noted that Medicare
Part B processes about 750 million claims each year, most of which are
typically outpatient expenses, including doctor services, home healthcare, and
preventative care. To aid in processing the large volume of claims, HP will
supply full development life cycle support for system maintenance and updates.
HP will also deliver production and user assistance.

In
addition to supporting Medicares claims processing, HP will deliver services
to Healthcare Integrated General Ledger Accounting System. This system
exchanges information with Medicares Multi-Carrier System (MCS) about claim
billing, provider and beneficiary profiles, check settlement, payment, and
other claim-related data.

HP
aims to support the 2003 Medicare Modernization Act and the Affordable Care
Act, which was passed earlier this year. The company plans to apply large-scale
governmental mandates like Health Insurance Portability and Accountability Act
(HIPAA) 5010 transactions. HP also intends to combine processing cycles within
CMS data centers and to develop new system interfaces in support of the CMS
National Level Repository. These efforts should help determine provider
incentives for implementing electronic health records.

As
the Medicare population grows, CMS continues to modernize to be able to manage
and deliver transformative technology that will improve Medicare services for
beneficiaries and healthcare providers alike, Dennis Stolkey, senior vice
president, U.S. Public Sector, HP Enterprise Services, wrote in a statement.
HP is proud to support CMS in their Medicare modernization initiatives. 

HP,
which will team up with four small businesses to provide valuable IT solutions,
has historically provided support
services

to Medicare and Medicaid clients. Since the commencement of the programs, the
company, becoming the largest processes management provider, has handled 35
percent of all Medicare and Medicaid claimsover 2.4 billion healthcare
transactions annually.

When
it comes to IT services, HP is competing in a field with many other
high-profile players, including IBM and its Global Services Division. In
addition, Dell, with its Perot Systems purchase, is also expanding into
government and health care IT services.

In
a recent report, IDC finds that global IT services spending is slated to grow
from $573.4 billion this year to $685 billion by 2014.

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