Three Alaska healthcare providers have filed a lawsuit against state Medicaid contractor, Xerox State Healthcare, over unreimbursed claims, according to the Alaska Dispatch.
South Peninsula Hospital in Homer, Alaska Speech and Language Clinic in Kenai and the Kenai Vision Center say the private company was late in reimbursing payment or failed to pay, resulting in millions in losses, according to the lawsuit.
In their complaint brought last month, the providers requested the court allow for a class-action lawsuit to enable other providers to join.
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The providers claim that because Xerox breached its contract with the state, by extension the company failed them.
Xerox State Healthcare is a subsidiary of Xerox Corp.
In September 2014, Alaska filed a lawsuit against Xerox State Healthcare for breach of contract for not completing a new software system within an agreed-upon deadline, according to Alaska.gov. The result, according to the state, was a failed Medicaid payment system in which claims were not paid.
The Alaska Department of Health and Social Services shored up struggling providers with more than $160 million in loans, according to adn.com.
Xerox State Healthcare agreed with the state to a corrective plan of action and since January 2015, the automated system has paid 90 percent of new claims correctly, according to the state.
Twitter: @SusanMorseHFN