These two organizations can’t seem but foul up in Texas. Both are again under the gun for their contract performance – Xerox with the Texas Department of Transportation (TXDOT) and the Health and Human Services Commission for contract irregularities with privatizing the Terrell State Hospital.
Xerox got TXDOT contact while in Medicaid mess
Xerox is taking heat because it is fouling up the billing with the TxTag automated road toll system. The company remarkably got the $100 million state contract months before it was removed as the state’s Medicaid claims administrator under HHSC and sued by the Attorney General for its handling of the Medicaid orthodontic prior authorization program. The state is rumored to be seeking as much as $1 billion out of the lawsuit.
Xerox gets fined twice for TXDOT screwups affecting 500,000 Texans
State legislators, and in particular Rep. Tony Dale, have been particularly incensed about Xerox’s dropping the ball with TXDOT. Legislators have excoriated company representatives at committee meetings at the Capitol.
The Xerox foul ups have been:
- the transition from 3M, the previous contractor, to Xerox was expected to take four days over the 4″‘ of July weekend but has taken over three months and is not complete.
- during this time, Xerox sent out two billings that resulted in thousands of Texans being wrongfully charged both toll violation fees and the higher pay by mail rate when they should have been charged the TxTag rate.
The media has reported that up to 500,000 Texans were affected and TXDOT is now in the process of having to send out $1.7 million in refunds. Xerox has been fined twice, both times for $177,000.
State auditor finds deficiencies in HHSC contract for state hospital
HHSC has come under fire again for a contracting mess for privatizing the Terrell State Hospital. They were all set to give the contract to Geo Care LLC except State Auditor John Keel reviewed the contract and found gross irregularities once again. The contract has been canceled.
Keel found that HHSC had undervalued the contract at $30 million when it was likely to exceed $550 million according to a report in the Dallas Morning News. HHSC also had not had the deal approved by the Texas attorney general’s office per state law.
Things do not look well for HHSC Executive Commissioner Kyle Janek again.