Computer Systems Company Sues NC Over Medicaid Claims Contract

A computer systems company barred from a lucrative contract with the state health department is suing the agency.

The lawsuit filed in Wake County on Monday says Affiliated Computer Services was to get a 171 million-dollar deal to build and operate a system for Medicaid claims for the Department of Health and Human Services. The lawsuit says the five-year deal didn't go through because of state mismanagement.

The lawsuit accuses state officials of providing inadequate information and failing to conduct timely reviews of company work. The lawsuit also says the state agency created an oversight organization made up of employees and contractors who were mostly unqualified.

Health department spokeswoman Debbie Crane declined to comment on the lawsuit when contacted by The News and Observer of Raleigh.
Department chief Carmen Hooker Odom and the state also were named
in the suit.