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SD Medicaid Management System Update Stymied

January 9, 2012, 4:46 PM

PIERRE, SD - South Dakota officials say development of a new Medicaid management system is far behind schedule because of a dispute between the state and the company hired to do the work.

The state signed a contract in 2008 with Client Network Service Inc. to develop a new $72 million computerized system for managing the program that pays medical expenses for low-income people.

State Social Services Secretary Kim Malsam-Rysdon told a legislative committee Monday that the state ended the contract in October 2010 because the work was behind schedule and of poor quality.  The state and the company then wound up in court. But Malsam-Rysdon says the state and the company have been in mediation in an attempt to solve problems and get the project moving again.

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