Newsroom > DHHS News Release

July 31, 2009

Marla Augustine, Communications and Legislative Services, (402) 471-4047 or


DHHS Terminates Contract for Medicaid Computer System

Lincoln – The Nebraska Department of Health and Human Services (DHHS) has terminated its contract with FourThought Group, Inc., for the development of a new Nebraska Medicaid Management Information System (MMIS).

“For a number of months we’ve been monitoring the contract deliverables and working closely with the vendor to identify and resolve concerns,” said Kerry Winterer, CEO for DHHS. “We’ve come to the conclusion that it’s in the best interests of the State to terminate the contract.”

State officials monitoring the project became concerned several months ago when the vendor provided the blue print for the new system. Winterer said, “From the department’s point of view it became clear then that the vendor did not have the capacity to deliver the system they proposed.”

Winterer said the State exercised its option to terminate the contract and issued a termination letter in mid-June. DHHS officials have been working with the vendor to resolve final payments. The contract officially ended July 22. Winterer said DHHS will review its options to move forward.

The contract, signed in May 2008, was to design a new Medicaid payment system to replace the current MMIS, which was developed in the 1970s.