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State OKs $710M Contract for Medi-Cal Services

The state's Medi-Cal Management Information System will have a new fiscal intermediary contractor in October.

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The state's Medi-Cal Management Information System will have a new fiscal intermediary contractor in October. 

The state Department of Health Care Services awarded the contract to DXC, which will take over business operations from Conduent. Those services include assisting the review of about 200 million Medi-Cal fee-for-service claims a year, drug rebate processing, managing provider relations and a call center. The system manages services for up to 14 million Californians and up to $5 billion in state revenue.

The DXC contract, which will run through June 2028, is valued at $710 million.

A separate contract exists for IT maintenance and operations of the system mainframe, which also began in October and is serviced by IBM. IBM will provide all IT service to support the mainframe.

DXC will provide staff for Medi-Cal fee-for-service claims payments and other business services based upon state direction and policy as of October 2019.

Kayla Nick-Kearney was a staff writer for Techwire from March 2017 through January 2019.