State to get $30M of settlement money from Deloitte

Updated at 4:12 p.m.

PROVIDENCE – Rhode Island will receive $30 million of the $50 million payment from Deloitte Consulting LLP negotiated by Gov. Gina M. Raimondo, the R.I. Department of Human Services announced on Wednesday.

The payment is related to the fraught launch of the state’s integrated public benefits computer system, RI Bridges. The project to consolidate the systems was called the Unified Health Infrastructure Project, or UHIP.

The remaining $20 million will be split between the Centers for Medicaid and Medicare Services and the U.S. Food and Nutrition Service.

The announcement of the state’s share of the funds comes after, “months of discussions with federal partners,” DHS said. Under the agreement the state waived claims against Deloitte for prior work.

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The state’s funds will be used to maintain funding for “current priorities within fiscal year 2020,” the DHS said, including contracts, personnel, hardware and software for the RI Bridges system.

DHS noted that Deloitte has not received payment since 2016 for the project. The state in that time has received $220 million in discounts and payments from Deloitte. Raimondo renewed Deloitte’s contract in 2019. Raimondo included the $50 million payment as part of the negotiated deal.

The governor’s office said Deloitte will continue to focus on system stability and compliance through the end of 2019 and ensure RI Bridges is properly operated through fiscal 2021.

The 10-year budget for RI Bridges includes $149 million in state funds and $500 million in federal funds.

“The state is grateful to our partners at the federal government for their handling of this unprecedented contract and settlement negotiation,” said DHS Director Courtney E. Hawkins. “Ensuring continuity of service and system stability for the next 16 months is a key priority for DHS and this contract amendment supports this goal.”

(Updates fourth paragraph to ADD state waiving claims on prior work.)