HP Services Nabs $176 Million Medicaid Deal to Prep Nevada for Health Care Reform

Hewlett-Packard Co’s Enterprise Services unit said that it has won a five-year contract to provide the state of Nevada’s Division of Health Care Financing and Policy with upgrades to its Medicaid IT system, enhance service delivery, improve staff productivity and operate as its Medicaid fiscal agent.

The award marks HP’s second such deal in the past month. In late February it won a seven-year, $281 million contract extension with the Oklahoma Health Care Authority to similarly help that state.

Nevada has tasked HP with preparing it to meet requirements of the federal government’s health care legislation. Nevada’s Medicaid agency processes about 12 million claims each year for some 300,000 eligible state residents, spending some $1.5 billion annually on related programs.

Under terms of the contract, HP will process medical and pharmacy claims, authorization requests, use management and personal care reviews. The vendor also said that it will help to link health care providers with medical records to improve care for Nevada’s Medicaid recipients.

The vendor also will add new decision-support systems and services to lower the costs and risks and help the state meet the challenges of administering its Medicaid program, including ferreting out fraudulent claims and improving claims processing.

“We look to HP for a smooth transition to more effectively administer benefits to our residents and provide excellent policy guidance to help us prepare for and manage challenges such as healthcare reform,” said Charles Duarte, Nevada Medicaid administrator.

Susan Arthur, HP Enterprise Services vice president, U.S. Healthcare Industry, said that the vendor is well-suited to help Nevada’s Medicaid agency prepare for health care reform legislation.

“HP will build on our deep industry, applications and infrastructure expertise as well as experience from supporting 21 other states’ Medicaid programs to ensure Nevada can deliver quality healthcare to Medicaid clients while continuing to remain responsible stewards of state revenues,” said Arthur.

HP said that it administers $95 billion in benefits a year and serves as fiscal agent or principal IT provider to 21 other Medicaid programs.