The US Department of Labor has awarded Affiliated Computer Services Inc a three-year, $74.8m contract to process medical claims for its Office of Workers’ Compensation Program.
Under the deal, ACS will handle the following services for the OWCP: claims resolution; prior authorization; provider enrollment; call center functions; and imaging and web portal management, according to an ACS release.
The company had previously provided the same services to OWCP through a subcontract with Lockheed Martin Corp, and with the new contract, ACS is now directly contracting with the government. ACS in 2003 sold almost all of its federal business to Lockheed, in exchange for the defense contractors’ commercial business and what worked out to be about $550m.
But now ACS sees an opportunity in the federal health care market, as costs keep soaring and the government tries to trim down its administrative spending, said Chris Deelsnyder, managing director of ACS’ government health care business.
ACS has long provided these types of health care services on the state and local level, whether processing Medicaid claims or supporting other social services programs. And on the commercial side, the company makes much of its money through outsourced IT and processing work with health care payers and providers.
The focus must continue to be on the patient and by limiting cost growth or even cutting costs on administrative and back office work, more money can flow to where it is really needed, Deelsnyder told Computer Business Review.