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HP Unit Wins Five-year Contract Renewal Worth $72.3 Mln - Update

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8/22/2011 8:17 AM ET

Hewlett-Packard Co. (HPQ: Quote) said Monday that its subsidiary NHIC Corp. has been awarded a five-year contract renewal worth $72.3 million by the U.S. Centers for Medicare & Medicaid Services to continue servicing Durable Medical Equipment or DME suppliers in 11 northeastern U.S. states and the District of Columbia.

Under the contract, NHIC will continue to provide services such as claims processing, medical review, medical policy, appeals processing and customer service through March 2016.

HP noted that since 2006, NHIC has been servicing DME suppliers in Jurisdiction A, which includes Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont.

Dennis Stolkey, senior vice president of U.S. Public Sector, HP Enterprise Services said, "As the Medicare population grows, CMS continues to modernize to manage and deliver transformative technology that will improve Medicare services for beneficiaries and healthcare providers alike. HP, through its subsidiary NHIC Corp., will continue to assist CMS by increasing productivity of claims processing, improving customer satisfaction and providing more efficient administration of DME benefits to the Northeast region."

NHIC currently administers Medicare Part B claim payments as the Jurisdiction 14 or J14 Medicare Administrative Contractor for Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, serving more than 1.3 million beneficiaries and more than 53,000 healthcare providers. J14 also includes the Regional Home Health and Hospice Intermediary workload in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.

HP currently handles 35 percent of all Medicare claims in the United States and processes 2.4 billion healthcare transactions annually, including 1 billion in healthcare claims.

HPQ closed Friday's trading at $23.60, down $5.91 on a volume of 129.06 million shares. In Monday's pre-market, the stock is trading at $24.03, up $0.43 or 1.82 percent.

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by RTT Staff Writer

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