Techwire reported Monday that the Department of Health Care Services (DHCS) and system integrator Xerox State Healthcare are discussing how they will move forward on replacement of California’s Medicaid case management system.
DHCS sent a letter to Xerox dated Sept. 22 notifying the company it missed a Sept. 21 deadline for delivering Release 2.0 of the CA-MMIS system. In the letter, DHCS said there is risk of further project delays and that fixes to source code, architectural design and other elements are needed.
Read the letter here.
On Oct. 13 Xerox announced publicly that it’s unlikely to finish its Health Enterprise platform in California. The company said it’s in discussions with the state. DHCS reiterated Tuesday that those discussions are underway, and Xerox will continue operating the existing claims payment system for DHCS.
Management of CA-MMIS has changed hands a few times since it was developed in the late 1970s. Electronic Data Systems managed the system from 1987 through 2008, when Hewlett-Packard acquired Electronic Data Systems. DHCS put maintenance and operation — and development and implementation of a replacement system out to bid in 2008. Xerox assumed operating CA-MMIS in April 2012.
The system replacement project is budgeted at $458 million, according to the Department of Technology.
