Blue Cross & Blue Shield of Rhode Island and Perot Systems Corp. of Plano, Texas, Wednesday announced they were modifying their existing agreements regarding the planned replacement of the insurer’s LRSP claims-processing system.
The change will not affect BCBSRI subscribers.
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Perot Systems will continue work on the business process and information technology outsourcing that make up the vast majority of the work it does for BCBSRI, the companies said in their PRNewswire announcement.
The LRSP replacement represents about 3 percent of the total value of the companies’ agreements, they said. The infrastructure, applications and business process outsourcing portions of the 10-year agreements they signed in 2003 remain substantially the same.
“Several months ago, Blue Cross and Perot took a step back to re-examine the LRSP replacement project,” said James Purcell, president and CEO of BCBSRI. “Following that assessment, we agreed to make changes to our relationship that reflect the current strategies of our respective companies.”
Under the revised agreement, BCBSRI assumes control and gains flexibility over the selection, customization and implementation of a system to replace its current LRSP claims-processing software, while obtaining a license to Perot Systems’ Payer PERADIGM(TM) Enterprise Software. And, among other provisions, Perot Systems is to pay BCBSRI, over four years, $12 million of the$19 million implementation fee it had collected in advance but had never recognized as revenue.
“It is our privilege to serve an outstanding organization like Blue Cross & Blue Shield of Rhode Island,” said Peter Altabef, president and CEO of Perot Systems (www.perotsystems.com). “It was very important to us to ensure that the changes to our relationship were mutually beneficial.”
“We are pleased with this new arrangement,” said BCBSRI’s Purcell. “We look forward to a continued long-term partnership with Perot Systems as our provider of technology, applications, and business process services.”
