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DOHSC contract with Deloitte balloons to $1.1 billion via amendment

1 report, 1 independent Updated Sun 00:00
AI-generated briefing. Brind wrote this from the reports listed below. It can be wrong. Each section says how much you can rely on it, and the sources are linked so you can check.

What happened

Some supportReported by 1 outlet

The Department of Health and Social Care initially awarded Deloitte a $177 million contract in 2023 to centralize part of the Medicaid application process. The administration later amended this deal by $866 million in August, increasing the total contract value to $1.1 billion. Before the recent increase, the contract had already grown to $317 million.

From nypost.com

Why it matters

Some supportBrind's analysis of the reports

Watchdogs have criticized the contract expansion, noting that the amendment was more than four times the original price. Critics argue that a contract expansion of this size should have triggered a public bidding process, as governments are required to follow competitive bidding procedures.

From nypost.com

Who's involved

  • Department of Health and Social CareAwarded the contract to Deloitte for the Medicaid system.
  • DeloitteWas contracted by the Department of Health and Social Care to manage the Medicaid Eligibility and Client Management system.

Who could feel it

Possible knock-on effects

These are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.

  • DeloitteSpeculative

    Could see a massive increase in revenue due to the contract amendment for the MECM system.

  • Ernst & YoungSpeculative

    Might face increased pressure on public sector bids from Deloitte's contract win.

  • KPMGSpeculative

    Might face increased pressure on public sector bids from Deloitte's contract win.

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The entities involved

Coverage

Newest first; wire copies grouped