ACS wins state Medicaid work

Affiliated Computer Services has captured a Medicaid administration contract with New Mexico that could be worth as much as $82.5 million.

The contract with the state’s Human Services Department covers a five-year base period and provides for three one-year options.

ACS’ Medicaid work with the state extends back to 1994. At that time, ACS assumed responsibility for the previous contractor’s Medicaid Management Information System, according to the company. In 2002 ACS developed and installed the OmniCaid system, which replaced the Medicaid Management Information System.

The New Mexico deal closely follows ACS’ $45 million contract to provide electronic benefits transfer services for the Ohio Department of Job and Family Services. The company announced that pact in September. Government projects represented half of the company’s revenue during its fiscal 2005, which ended June 30. Total revenue for the period was $4.4 billion.

ACS also announced today that Jeff Rich, the company’s chief executive officer, will leave the company to pursue other unspecified business ventures. Mark King, ACS’ president, will take over Rich’s CEO responsibilities.

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