Harvard Pilgrim Health Care has signed a $1 billion deal with Perot Systems Corp. for information technology and business process services through 2021.
Representatives of the Massachusetts-based not-for-profit health plan say the company will realize approximately $150 million of administrative cost savings over the life of the agreement through the consolidation and leveraging of technology, administrative functions and redesign of administrative operations.
"Over eight years ago, Harvard Pilgrim turned to Perot Systems because of their reputation for being the leading healthcare IT service provider," said Charles D. Baker, CEO of Harvard Pilgrim. "Since that time, we have relied on Perot Systems to help us successfully improve our level of customer service and increase operational efficiencies."
Perot Systems, based in Plano, Texas, will operate and support Harvard Pilgrim's information technology infrastructure, business applications, and administrative business operations.
"We are committed to helping Harvard Pilgrim to continue building upon their distinguished record of success," said Peter Altabef, president and CEO for Perot Systems. "Their dedication to the consumers of healthcare reinforces the reasons why they are our nation's top health plan."
The Harvard Pilgrim health plan serves more than one million members in Massachusetts, New Hampshire and Maine. For three years in a row, Harvard Pilgrim has been ranked as the top healthcare plan in the United States, according to a joint ranking by U.S. News & World Report and the National Committee for Quality Assurance.
Perot Systems is a provider of consulting, business process, and technology-based services for the healthcare industry. The company reported 2007 revenue of $2.6 billion.