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Starting off the New Year Strong: The Health Care and Social Services Market in January 2010

The state and local health care and social services industries started off the first month of the New Year with feverish intensity--from outlining plans for statewide health information exchange (HIE) projects to engaging in Women, Infant, and Children (WIC) Electronic Benefit Transfer (EBT) state feasibility studies. Despite lingering budget deficits that will continue to impact the upcoming fiscal year, some states are still able to move forward with information technology (IT) projects that are revenue generating and/or more cost effective.

Around the industry, January brought forth two major business agreements. Accenture and Oracle have joined forces to develop integrated software packages to address the needs of state social services agencies and their rising workloads. The collaborative child welfare case management solution is based in part on Oracle's Siebel CRM Public Sector Case Management commercial-off-the-shelf (COTS) product, Oracle's Policy Automation rules engine, and Accenture's current child welfare solutions. The second business deal was Unisys agreeing to sell its health information management business to Molina Healthcare for $135 million. The deal is expected to close in the first half of 2010. Unisys currently contracts with several states, including West Virginia and New Jersey, providing Medicaid Management Information Systems (MMIS) and fiscal agent services. This is an interesting transaction, as Molina is a managed care provider. In other news, the California Regional Health Information Organization (CalRHIO) will be closing its doors after a failed attempt to be named the state designated entity. The state has elected to create a new entity to lead it's HIE efforts. And midmonth the federal U.S. Department of Health and Human Services (DHHS) released the proposed rule for the provider electronic health record (EHR) incentive program. The Centers for Medicare & Medicaid Services (CMS) is currently accepting comments from stakeholders on all issues set forth in the proposed rule.

GovWin released two blogs for the 2010 top initiatives in both the health care and social services sectors. The health care line-up exceeds an estimated $780 million in potential contracting opportunities and includes projects such as the highly anticipated New York Medicaid Management Information System and the Oklahoma HIE. On the social services side, investments total an estimated $243 million in IT spending. Topping the list is the California Child Support Maintenance and Operations project, as well as, the Florida Unemployment Compensation Modernization initiative. In addition, GovWin hosted a webinar on statewide HIEs and the $564 million in economic stimulus funding that is being used to accelerate network implementation efforts. Slides and the recording can be downloaded here.

Below is some notable contracting activity:

  • The New York Office of Children and Family Services (OCFS) released the Child Care and Attendance Payment System Request for Proposals (RFP) in the beginning of the month.
  • The Ohio Health Information Partnership (OHIP) released a Request for Information (RFI) seeking information on full service HIE solutions that best fit the state's requirements.
  • Iowa's Department of Public Health released an RFI for the development of a Business and Financial Plan for Iowa e-Health. Responses are due by February 16, 2010.
  • The State of Tennessee Department of Labor and Workforce Development released a RFP for the Procurement of Vendor Services to Assist the Southeast Consortium in Conducting a Study to Define and Evaluate a Planned Approach to Collaboratively Develop an Unemployment Insurance (UI) Benefit System and to Present Findings of this Study. To review the forecasted UI Benefit System please go here.
  • Capgemini Government Solutions, LLC was awarded the Unemployment Insurance Modernization contract with the Nevada Department of Employment, Training and Rehabilitation (DETR) in the amount of $27,943,902.
  • The California Department of Health Care Services (DHCS) awarded ACS State Healthcare, LLC the MMIS and fiscal agent contract. The contract is valued at $1.4 billion.
  • The Minnesota Department of Human Services confirmed they awarded the Food Stamps EBT contract to eFunds. The contract will run from May 1, 2010, to April 30, 2015.
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