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DHS news release

July 11, 2005

 

Contact: Trish Neiworth, Office of Public Affairs, (503) 945-5922

Program contacts: Bryan Johnston, Interim DHS Director, (503) 945-6956

Jim Joyce, MMIS Replacement Project Manager, (503) 378-2101, ext. 357

 

Vendor to develop enhanced Medicaid computer system; replaces department's out-of-date technology


 

The Oregon Department of Human Services (DHS) has selected a vendor to design, develop, implement and maintain a new state-of-the-art Medicaid Management Information System (MMIS), estimated to cost approximately $73 million over the next seven years.

 

"We are replacing our grossly outdated system to keep pace with the changing needs of today's Medicaid program and to work more efficiently with our service providers and clients," said Bryan Johnston, DHS interim director.

 

The current MMIS contains 30-year-old systems technology, is backlogged, needs software upgrades, and is unable to efficiently process more than 26 million health care transactions per year with more than 31,000 providers, who serve an estimated 600,000 Oregonians annually.

 

The new system is expected to be operational in 2007. The estimated contract cost includes purchase and maintenance of the system through 2012, with the option to extend to 2015. The federal government pays for 90 percent of the MMIS replacement cost.

 

The Oregon MMIS will be based on a federally certified Medicaid system currently operating in several states, including Kansas, Oklahoma and Pennsylvania.

 

"The new system will make it easier for providers to determine eligibility, receive service authorizations, submit claims and receive payments," Johnston said.

 

DHS contracted earlier this year with FOX Systems, Inc., to provide quality assurance and oversight for this project. FOX, based in Scottsdale, Ariz., is a nationally recognized consulting practice specializing in services related to large-scale information systems that support state Medicaid programs.

 

Electronic Data Systems (EDS) of Plano, Texas, was selected to implement the project after a competitive bidding process and an extensive evaluation period. EDS is the nation's leading provider of Medicaid management services, currently managing Medicaid programs in 19 states.

 

Note: You may download a fact sheet (PDF) about the MMIS replacement project here.