Medi-Cal contracted with Xerox in 2010 to develop the case management system, and Xerox has released phase one out of five phases already. However, “Release 2 is far more complex than Release 1 and is expected to address over 1,300 functional requirements, which is significantly more than the 27 functional requirements addressed by Release 1,” according to a report State Auditor Elaine Howle submitted to lawmakers.
Xerox has been involved with similar projects in other states, which have also experienced lengthy delays, according to the report. For example, New Hampshire’s project that launched in 2013 was five years behind schedule, and Alaska’s project was finished three years late. Montana is currently working with Xerox on a system, but it is already expected to be launched two years late, according to the report. Additionally, Xerox is working on a management system for North Dakota, a project that is six years late.
“The continued delays and other problems encountered by these other states with much smaller Medicaid programs strongly suggest that Health Care Services has a high risk of experiencing more delays and problems before its new system is fully implemented,” Ms. Howle wrote in the audit.
She suggested the Health Care Services ensure Xerox addresses all the concerns in a timely manner and develop a roadmap to follow as the project advances, according to the report.
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