HP Inks $176 million Health-Care Services Deal With State Of Nevada

Under terms of the deal, HP will work with the Nevada Division of Health Care Financing and Policy, which oversees Medicaid benefits for about 300,000 Nevada residents, handles around 12 million claims annually, and serves as the agency's Medicaid fiscal agent.

In this role, HP will process medical and pharmacy claims, handle prior authorization requests, and oversee personal care reviews for Nevada state residents. HP's duties also extend to connecting health-care providers with critical health information to improve the overall effectiveness of the Medicaid program.

HP has plenty of experience in this area, as it already administers $95 billion in Medicaid benefits annually and is either the fiscal agent or principal IT provider for 21 additional Medicaid programs. HP gained a major chunk of its Medicaid services expertise from its $13.9 billion acquisition of services giant EDS in 2008.

"We look to HP for a smooth transition to more effectively administer benefits to our residents and provide excellent policy guidance to help us prepare for and manage challenges such as healthcare reform," said Charles Duarte, Medicaid administrator for the state of Nevada, in a statement.

Sponsored post

Software is a key priority for new HP CEO Leo Apotheker, who cited the strength of the medical software that comprises HP's Medicaid platform in HP's fourth quarter earnings call last November.

HP will also help Nevada detect health-care fraud and abuse cases, boost the state's ability to process claims and develop new Medicaid decision-support systems and services. HP will also help guide Nevada into compliance with the IT aspects of healthcare reform.

"All states are preparing for demands required by new healthcare reform legislation," Susan Arthur, vice president of U.S. Healthcare Industry for HP Enterprise Services, said in a statement.

Mike Humke, vice president of public sector for HP's Solutions Partners Organization and a key driver for HP's health-care IT business, left HP last November and took a health-care position at Ingram Micro a month later.

Matt Smith, director of marketing for HP's Americas Solutions Provider Organization, took over Humke's public sector and health-care channel duties at HP following his departure.