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HP Awarded $122 Million Contract Extension With North Carolina Health Dept.

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2/23/2012 2:21 PM ET

HP Enterprise Services Thursday announced a $122 million agreement with the North Carolina Department of Health and Human Services for HP (HPQ: Quote) to continue providing Medicaid and mental health fiscal agent services for up to two years.

Under the extension, HP said it will continue managing North Carolina's Medicaid Management Information System, or MMIS, with business process outsourcing services. HP also is helping the state prepare for changes in the healthcare industry for Medicaid and mental health programs.

HP helps North Carolina manage its Medicaid and mental health programs by processing more than 80 million claims annually for more than 60,000 providers and 1.7 million recipients statewide.

In late 2011, HP assumed management of North Carolina Health Choice, the state's healthcare program for children, which includes 260,000 recipients and 35 million claims payments per year, totaling about $300 million.

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