Press Release: June 18, 2013

Tennessee Awards HP $88 Million Medicaid Contract Extension

HP to continue to provide continuity, stable foundation for TennCare transformation

PALO ALTO, Calif. — HP Enterprise Services today announced the Bureau of TennCare, Tennessee’s Medicaid program, has signed an $88 million agreement for HP to continue as the state’s facilities manager for another two years, helping enable the state’s program transformation while maintaining program stability for members.

Under the terms of the new agreement, which includes two one-year options, HP will help the state move its technology infrastructure to a more flexible and sustainable services-oriented architecture that will improve responsiveness to business changes.

The agreement also includes a continuation of HP Applications Services to maintain the TennCare Management Information System, which enhances workflow while providing timely access to accurate and meaningful information.

HP will continue to deploy federally mandated International Classification of Diseases – 10th Revision (ICD-10) medical coding features. These systems and services are designed to enable informed decisions and better program management, and to help achieve the state’s goals in accordance with federal funding requirements.

As TennCare’s facilities manager for the past 18 years, HP also will provide system stability by continuing to provide Business Process Outsourcing, including mailroom, data capture and resolution services.

“Preparing for federal- and state-driven program changes requires process and system modifications while maintaining smooth, uninterrupted interaction with providers and beneficiaries,” said Susan Arthur, vice president, U.S. Health and Life Sciences Industry, HP Enterprise Services. “The HP team is committed to providing a stable, secure and cost-effective environment that will support the state’s transformation while helping maintain a quality Medicaid program.”

TennCare is one of the oldest Medicaid managed care programs in the country, providing healthcare for 1.2 million Tennesseans and operating with an annual budget of approximately $9 billion. It is the only program in the nation to enroll the entire state Medicaid population in managed care. 

HP is the nation’s largest provider of Medicaid and Medicare process management services, administering $140 billion in benefits a year. It serves as the fiscal agent or principal IT provider for Medicaid in 20 states. HP’s U.S. healthcare experience spans payer, government and life science communities.

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