Two-and-a-half years and $7.2 million into its contract with New York-based Vitech Systems Group, an system provider, the state of Georgia is looking for a refund.
The state hired Vitech to develop a paperless online program to handle enrollments, eligibility and billing for its State Health (SHBP), which provides health insurance to more than 670,000 workers and their families.
SHBP was supposed go live in June 2006, but it’s still in limbo a year later, with no set completion date. The Department of Community Health (DCH) said the contract seemed “tainted with fraud.” Vitech Vice President James Vitello objected, saying, “We continue to work in close partnership with DCH.”
And, Vitech’s attorneys added, there’s no money-back guarantee in the contract.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/2881/georgia-state-health-benefits-plan-battles-with-program-vendor "
- Commuting perks: New rules make them more attractive
- Health care reform: Mark your calendar with these milestones
- Lessons from the 2006 SHRM conference: Do you really need to offer that employee benefit?
- How to counsel employees who have personal problems
- Carrots and sticks: 5 ways HIPAA limits wellness programs