Xerox changes direction on Medicaid management platform in California, Montana

Xerox issued an update Oct. 13 on the strategic direction of its government health care business, focusing the implementation of its Health Enterprise Medicaid platform in California and Montana.

Based on discussions with clients in California and Montana, Xerox said is likely it will not fully complete the implementation of the Health Enterprise Medicaid platform, its next-generation Medicaid Management Information System, in these states. Xerox said it expects to continue to process Medicaid claims using the existing legacy systems in California and Montana.

“Today’s announcement builds on the change in strategy from last quarter,” Xerox Chairman and CEO Ursula Burns said. “We are taking additional steps to improve our financial performance and significantly reduce the volatility of our results going forward.”
   
As a result of the changes in California and Montana, Xerox is recording a pretax charge of approximately $385 million in its third-quarter 2015 results reflecting estimated settlement costs and other impacts from these deviations.

Xerox said it is still dedicated to the completion and operation of the Health Enterprise platform for its other state clients. Xerox will continue to deliver other innovative government health care solutions to the 35 states it serves.
   
Xerox will report its third-quarter financial results and discuss its 2015 guidance on Monday.