Maryland’s Medicaid Information Technology Vendor Under Federal Investigation
In January, Louisiana received a subpoena from a federal grand jury requesting documents related to its contract with CNSI.
Meanwhile, the state had been conducting its own investigation into the deal, and it found that then-Louisiana Health and Hospitals Secretary Bruce Greenstein, a former CNSI vice president, exchanged “hundreds of telephone calls and thousands of text messages” with the company throughout the bidding and award process, according to a letter sent to CNSI’s attorney from Sandra Gillen, Louisiana’s director of state purchasing.
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The state’s procurement rules “expressly prohibited” those communications, which “created an unfair advantage to CNSI and prevented the fair, impartial and free competition among all” companies that sought the contract, Gillen said in the letter.
Greenstein resigned a week after the federal probe was revealed, state officials said. He denied any wrongdoing.
Further, CNSI vastly underbid the contract in order to capture the winning submission, then came back to the state months later requesting an additional $40 million, which would have placed CNSI’s bid in the ballpark of competitors, state officials said. CNSI is suing Louisiana for breach of contract.
In a letter to CNSI dated Aug. 9, Jane Benton, director of the Arkansas Department of Finance and Administration, said the state collected “significant unfavorable information” about the company from other states contacted during mandatory reference checks.
Benton highlighted a conversation with Jason Stewart, a project director for Utah’s Medicaid management information system, who “gave less than a wholly favorable review” of CNSI’s performance in its first few months setting up a new processing system in Utah.
Stewart told Arkansas officials “there had already been ‘slippages on deliverables’ and that his office regularly had to ‘push’ CNSI to remain on schedule,” Benton said in the letter.
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