Dinn, Hochman & Potter, LLC

Xerox agrees to complete work on Medicaid payment system

Ohio residents may be interested to learn about a breach of contract dispute that was just resolved between Xerox and the Montana Department of Health and Human Services. As of July 18, the state agency has confirmed that Xerox is no longer in breach of contract, and the company has begun cooperating with the planning of a $70-million-dollar project to create a payment handling system.

Right now, Montana DHS is using a payment system that is over 30 years old and is not able to interpret the complexity of new payment rules and regulations. According to the newly revised work plan, Xerox has agreed to create a new payment system that will be designed to last 20 years, called the Medicaid Management and Information System.

After the breach of contract dispute was resolved, the director of Montana DHS stated that his agency would begin monitoring Xerox's progress to ensure that the project is on track. The federal government will cover 90 percent of the project expenses, and Xerox will not be paid until the program is ready to be used. If Xerox should abandon work on the project, the contract specifies that it will then be obligated to repay the government.

When two parties have a contract dispute, a business and commercial law attorney may be able to help them to come to a settlement. If agreements in the settlement can be reached outside of court, all parties involved may be able to save valuable time and money. Once a new settlement has been reached, an attorney may also be able to help ensure that the companies involved are fulfilling their obligations in the contract.

Source: WBNS, "State and Xerox resolve Medicaid contract problem", July 23, 2014

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