Nevada awards $61 million contract for HIPAA compliance

Nevada awards $61 million contract for HIPAA compliance

The Nevada Human Resources Department has given a four-year, $61 million contract for IT services to First Health Services Inc. of Glen Allen, Va. A Nevada procurement official said the Medicaid Management Information System built under the contract would help the state comply with the federal Health Insurance Portability and Accountability Act of 1996, which mandates data security and privacy in health care systems. The Nevada system will process Medicaid claims and payments.

The contract calls for First Health Services to implement MMIS by October 2003 and operate it until October 2006. There are two three-year extension options. Unsuccessful bidders included ACS State Healthcare Inc. of Atlanta, Electronic Data Systems Corp. and Unisys Corp., the department said.

The federal Centers for Medicare and Medicaid Services this week urged organizations that cannot comply with HIPAA requirements by Oct. 16 to file a one-year extension request along with a compliance plan. More information appears at cms.hhs.gov/hipaa/hipaa2/ASCAForm.asp>.

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