IBM Corp. will provide information technology support to boost Kaiser Permanente’s health information network in a seven-year, $500 million contract, the companies announced.
The computer giant will manage Kaiser’s data center operations, including computer and storage systems and associated software. The Oakland, Calif.-based insurer will continue to manage its own applications including its electronic health record known as HealthConnect.
The contract will increase efforts to make healthcare more interconnected and enable users of HealthConnect and My Health Manager—Kaiser’s personal health record for members—to access the systems wherever and whenever they need, IBM said in a news release.
As a result of the deal, signed March 13, Kaiser will cut about 700 positions. About 40% of the affected employees will be eligible for employment at IBM, according to a Kaiser spokeswoman.
In addition, Kaiser is cutting another 160 IT jobs at more than 30 locations across its eight regions as part of a realignment strategy. No clinical positions are being eliminated.
“Like many other organizations, due to the slowing of the economy, we are slowing our growth in IT expense, which has resulted in elimination of positions,” Phil Fasano, chief information officer at Kaiser Permanente, said in a written statement.
According to Kaiser, the cuts affect about 15% of its IT workforce, and less than 1% of its overall workforce.
