Information technology company NCI, Reston, Va., has closed on a deal to purchase AdvanceMed Corp., a company focused on the detection and prevention of healthcare fraud, waste and abuse, for $62 million from Computer Sciences Corp., Falls Church, Va.
NCI completes $62 million AdvanceMed deal
NCI first announced in February that it had signed an agreement to purchase AdvanceMed, which has multiple contracts with the CMS as a Zone Program Integrity Contractor, a Medicaid Integrity Contractor and a Program Safeguard Contractor. It also conducts comprehensive error-rate testing for the CMS, according to an NCI news release.
AdvanceMed's contract with the CMS was cited in an Oct. 29 letter to the agency from the Senate Finance Committee's then-ranking member, Chuck Grassley (R-Iowa), who asked the CMS to list any identified conflicts of interest among the agency's contractors and highlight any steps that CMS had taken to prevent those conflicts. An issue was that AdvanceMed's contracts with the CMS would have positioned the company to evaluate the work of its own parent, Computer Sciences Corp.
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