A Florida appellate court Tuesday upheld a $308 million state contract with Electronic Data Systems Corp. to develop and run Florida's Medicaid computer system.
The 1st District Court of Appeal, without explanation,
rejected a challenge to the contract by one of the
losing bidders, Dallas-based Affiliated Computer
Services. The appellate court earlier had refused
to prevent implementation of the contract during the
The Agency for Health Care Administration awarded the
contract to EDS, based in Plano, Texas, last May. It
calls for the state to pay for developing the new
system over a 21-month period and then EDS will operate
it for five years.
Most of the development and operating costs will be
paid with federal money. The federal government splits
the costs of Medicaid, which provides healthcare
services for the poor, with the states.