Firm won $147.7M state contract after settling fraud suit
A company that in 2019 settled a
The contract, awarded without a news release being issued by the state agency or the company, followed the
Many of the employees who approved the claims had little or no medical training and were pushed by the company to process claims as fast as possible, court records associated with the state's lawsuit showed.
The settlement, announced simultaneously by
In its 2019 statement,
In
In a statement last week,
"We fulfilled the terms of a settlement with the state more than three years ago to resolve an unrelated matter going back to the 2004–2014 time period," Collins said in an email.
"
"Texas
The 24-page contract contains provisions stating that the company must meet specific performance measures and that its progress will be monitored monthly by the state. It also gives the Health and
The state agency may terminate the contract "at any time" without having to pay a penalty to the company.
Meanwhile, the
During the litigation process and after the settlement was announced, state officials were unsparing in their criticism of the company's processes while it was doing business with
The attorney general's office said at the time it had "determined that employees of Xerox,
"As a result, expensive, taxpayer-funded orthodontic work was performed on thousands of children who either didn't meet the Medicaid standard for braces or didn't require treatment," the office added.
In a statement of his own regarding the settlement, Paxton said the companies and their employees "compromised the integrity of the Medicaid program."
The attorney general's office did not respond to a request for comment about the new contract with
The document signed in December is actually the second post-settlement contract the state health agency has reached with
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