IT services vendor Perot Systems Corp has expanded its long-term contract with hospital operator Tenet Healthcare Corp.
Tenet has been a Perot customer since 1990 and the new deal will ensure that all the IT systems at the company’s 41 hospitals will be managed by Perot. According to Tenet, approximately 400 staff will be offered a voluntary transfer to Perot with comparable salaries and benefits.
Perot’s original five-year outsourcing deal with Tenet was extended for a further 10 years in July 2001, as part of a contract valued at about $550m. Since then, however, Tenet has divested more than 50 hospitals and its agreement with Perot has been restructured to take account of this reduction in scope.
Perot’s performance in its most recent fiscal quarter was negatively impacted by a problem contract with another healthcare organization, Blue Cross and Blue Shield of Rhode Island. Perot wrote off $43.7m of deferred costs related to the deal after a renegotiation reduced the scale of the project.