Alaska safety-net providers sue over botched Medicaid software

A group of providers in Alaska is suing a subsidiary of the Xerox Corp., claiming the company botched an install of new Medicaid payment software, the Alaska Daily News has reported. South Peninsula Hospital, Alaska Speech and Language Clinic, and the Kenai Vision Center sued Xerox State Healthcare LLC, the state's Medicaid contractor, earlier this week. The parties claimed that Xerox had misrepresented that the new Medicaid billing software was operational in October 2013. For the first several months after the processing system went live, claims were rejected on a large scale for several months, depriving providers of badly needed operating revenue. The Alaska Department of Health and Social Services had to float more than $160 million in loans to keep providers operating during that time. State officials have also filed a claim against the Xerox subsidiary, seeking $46.7 million in damages. Article

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