North Carolina, USA

Raleigh, NC: (Mar-28-07) In a legal battle between the state of North Carolina and Texas-based Affiliated Computer Services, which stemmed from a breach of contract by the state, a settlement was reached wherein, the state agreed to pay $10.5 million to Affiliated Computer Services, ending further claims. Affiliated Computer Services won a five-year, $171 million deal to modernize the state's Medicaid billing system in 2004. The department ended the deal after complaints that Affiliated Computer Services had missed deadlines. The out-of-court settlement requires the state to pay Affiliated Computer Services $6.2 million for work performed on the contract and another $4.3 million in exchange for the company installing additional Medicaid billing software. [FAY OBSERVER: MEDICAID BILLING]

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Published on Mar-29-07