Baylor Health Care System will outsource the billing and collection services for its hospitals to Electronic Data Systems under a 10-year, $200 million agreement the companies announced Monday. Under the agreement, 220 Baylor employees will become employees of EDS once the Plano, Texas-based services company takes over Baylor's billing operations in July. The agreement calls for EDS to reduce the administrative costs of Baylor's billing system by 10 percent to 15 percent.
Last summer, Dallas-based Baylor signed a separate agreement with EDS to outsource services such as billing, record keeping and scheduling for a network of physician practices it owns. Baylor runs a network of hospitals, specialty medical centers and a research institute located in the Dallas/Fort Worth area.