Audit says Xerox won’t complete $84 million Montana Medicaid project on time; Xerox remains confident

At the pace it’s going, Xerox Corp. will be six years past its renegotiated deadline by the time it completes an $84 million state contract for a new computer program to manage Medicaid payments, according to an audit of the project.

State officials received the report last week after the Legislature sought an outside review. Since the Medicaid Management and Information system project began in 2012, Xerox has been found in breach of contract for missing deadlines and a legislative panel has given them a vote of no confidence.

The state and Xerox resolved breach of contract issues last year and renegotiated the contract with a new deadline of May 2017. The audit by Public Knowledge, LLC, predicts the project could take until 2023 — more than eight years past the original deadline of February 2015.

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