News Headlines Article

HP loses appeal on huge state health contract
Sacramento Bee

A state hearing officer has rejected an appeal by a Hewlett Packard subsidiary and cleared the way for the California Department of Health Care Services to award a $1.6 billion contract to a Texas firm to handle the state’s Medi-Cal payment system.

As part of the pact, Dallas-based Affiliated Computer Services is expected to retain the 1,200 Electronic Data Systems employees, all in the Sacramento area, currently assigned to the contract, state officials said.