A Sick Medicaid System - 1214 Words

A Sick Medicaid System August 5, 2012 Maine Department of Human Services (DHS) believed that they needed a new Medicaid system so that information could be safer, accurate, and provided more functions. This new system needed to be updated with the new HIPAA requirements. DHS managers reasoned that building a new system would be easier and less expensive to maintain than upgrading and maintaining the old system (Oz, 2009). In 2001 DHS put together a proposal. They received two offers. DHS chose the lowest bid from a company called CNSI. CNSI had no experience with a Medicaid system. When trying to build this new system there was very little†¦show more content†¦In what sense was the cutover in this case riskier than in other such conversions? As for DHHS they chose to build a new system unlike most states that chose to only integrate their systems so they met HIPAA requirements. By choosing to build a new system they would have no access to the legacy system and all information would now become extinct once the c ut over occurred. By DHHS rushing the conversion they in turn were not ready for the cut over and in turn also fell behind on the agreed schedule. By this occurring and the merging of departments the IT department was cut in half and no one discussed what the other was doing. Also, there was no one from HIPAA on the committee to begin with to approve and assist with all programming rules and regulations (Oz, 2009). Recommendations: There are several ways that DHHS could have conducted this conversion. My recommendations are as follows: (1) A project team should have been selected before the RFP’s were to be processed. (2) DHHS should have made some efforts to negotiate with Keane seeing that they were more qualified out of the two. (3) DHHS should have conducted more research on the companies that offered the bids. 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