HP wins $117M contract to build new Colorado Medicaid management system

Apr 22, 2014, 5:33pm MDT

Denver Business Journal

Colorado will pay HP Enterprise Services $116.9 million to implement a new Medicaid management system.

It won a contract that drew the ire of some business organizations because the Colorado Department of Health Care Policy and Financing required that bids be submitted on seven non-returnable iPads, as the Denver Business Journal reported in 2012

A bill to require that the state give back to companies any hardware submitted as part of the public contracting process died during the 2013 legislative session.

HP Enterprise Services is the business and technology services division of Palo Alto, Calif.-based tech giant Hewlett-Packard Co. (NYSE: HPQ).

HP will develop a new system to oversee the multi-billion-dollar Medicaid system, which serves about 950,000 Colorado residents and processes some 44 million medical claims each year. 

Under a five-year agreement that includes five option years, the company also will facilitate interface development between the Medicaid management system and the state’s pharmacy benefits management, business intelligence and data management systems.

The Medicaid management information system (MMIS) will be based on HP’s interChange Healthcare platform.

“Colorado interChange will support our Accountable Care Collaborative program, a growing number of clients and social service organizations, and the shift to outcome-focused care while also helping us prepare for federal reform,” said Chris Underwood, deputy HCPF finance director. “HP has proven its deep MMIS knowledge and experience in other states, and we expect the new Colorado interChange system will help us deliver the best possible care in the most cost-effective way.”

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