Big Five firm PricewaterhouseCoopers (PwC), along with Electronic Data Systems Corp. (EDS) and Oracle Corp., have been awarded a contract to provide the new Medicare and Medicaid accounting system for the U.S. Department of Health and Human Services.
The estimated value of the contract is over $325 million.
PwC will integrate systems for the project, Oracle will provide the financial accounting software, and EDS will oversee the hardware and software applications.
The new system is called Healthcare Integrated General Ledger Accounting System (HIGLAS), and this system will replace the 53 different systems that are currently in use by private insurance companies that process and pay nearly 3 million Medicare claims daily.
The new accounting system is expected to be completed and fully implemented by 2006. It is expected that the new system will save the government approximately $1.2 billion over the course of the next 10 years.