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EDS wins $40 million health deal

Electronic Data Systems announced on Monday that it has been awarded a $40 million, three-year contract to continue managing Alabama's Medicaid program. If all the options in the new contract are exercised, the value of the contract could reach $63 million, the information technology services company said.

Under the new contract, EDS will add more than 25 program elements to the Medicaid network of the agency that provides medical services to 700,000 low-income residents. The Plano, Texas-based company operates and maintains a statewide network for helping health care professionals in claims processing and payments to doctors, hospitals, nursing homes and other providers. EDS said every year it processes more than 20 million claims and makes payments to more than 15,000 providers.