NY State Medicaid Renews, Expands CSC Services Contract

Computer Sciences Corporation has signed a six-year, $351 million contract with the New York State Department of Health in support of the state's Medicaid program. CSC will develop a new information system for claims processing and reporting, create a large-scale data warehouse, and provide various electronic data interchange (EDI) services.

Under terms of the new agreement, CSC will develop a new Replacement Medicaid System (RMS) for the state. This includes the establishment of an extensive seven-terabyte data warehouse environment for analyzing the state's more than 230 million annual Medicaid claims; upgrade of the existing Medicaid Management Information System (MMIS) software; and the development of a new Electronic Medicaid Eligibility Verification System (EMEVS). The new EMEVS system will enable medical providers to quickly verify program eligibility for Medicaid recipients, facilitate electronic submission of claims, allow pharmacies to check for potentially harmful drug interactions and costly overutilizations, and significantly increase the efficiency of pre-authorizations by providers and pharmacists. Finally, CSC will develop and maintain electronic versions of the state's provider manuals, which providers will be able to access via the Internet.

Bull HN Information Systems Inc. of Billerica, Mass., will work with CSC to establish the new data warehouse, while Atlanta-based Consultec Inc will assist in the development of the Replacement Medicaid System, using advanced database architecture.

While the new system is being developed, CSC, which has worked with New York's Medicaid program under two previous contracts since 1986, will continue to manage the Department of Health's MMIS, which processes claims, makes payments, provides reports and generally supports New York's healthcare policy initiatives.

"We are gratified by the trust that New York's Department of Health has again placed in CSC," said Van B. Honeycutt, chairman, president and CEO of CSC. "The size and complexity of the state's new I/T requirements will provide us with a platform to demonstrate the effectiveness and breadth of our resources and expertise in both the healthcare industry and the emerging world of e-business."

Since the inception of our tenure as New York's MMIS Fiscal Agent, CSC's performance has consistently received high ratings on system evaluations performed by federal and state agencies. In support of the Medicaid program, CSC has performed a number of significant data center upgrades with no downtime or errors, implemented a number of major program enhancements and provided effective solutions to support new reporting requirements.

"Our successful track record in working with the state over the past 14 years gave us a solid foundation to secure this new opportunity," said Arthur Spiegel, president of CSC's Healthcare Group. "The state's agenda has become our own and we look forward to continuing to provide this level of service."

CSC's Healthcare Group offers management services and technology to meet the strategic, operations, applications, information systems integration and business processing outsourcing needs of providers, payors and life sciences organizations. A proud trustee sponsor of the Malcolm Baldrige National Quality Award, CSC's Healthcare Group offers a healthcare focus and end-to-end solution set that are unparalleled in the industry. Its clients include many of the nation's top insurance and pharmaceutical organizations as well as many of the country's most respected hospital systems, academic medical centers, community hospitals, group practices and industry associations.

Computer Sciences Corporation helps clients in industry and government use information technology to achieve strategic and operational objectives. With 57,000 employees in more than 700 offices worldwide, the company tailors solutions from a broad suite of integrated service offerings, including ebusiness strategies and technologies; management and I/T consulting; systems development and integration; application software; and I/T and business process outsourcing.

Since its formation in 1959, CSC has been known for its flexibility in its relationships with clients. Through numerous agreements with hardware and software technology firms, the company is able to identify and manage solutions specifically tailored to each client's needs. CSC had revenues of $9.1 billion for the twelve months ended December 31, 1999. Its headquarters are in El Segundo, California. For more information, visit the company's Web site at www.csc.com.

Contact Ellen Downey Manager Marketing Communications Healthcare Group, 248-372-3442 edowney@csc.com.