November 10, 2005

Companies win health information contracts

WASHINGTON (Reuters) - Groups led by IBM, Northrop Grumman,
Accenture and Computer Sciences won U.S. government contracts
to develop models for a nationwide health-information network,
federal officials said on Thursday.

The contracts are worth a total of $18.6 million, the
Department of Health and Human Services said in a statement.

Each company will lead a consortium of technology
developers and health-care providers to develop an
information-sharing network for hospitals, laboratories,
pharmacies and physicians in various regions.

The groups will work to ensure information can be shared
between each of their four networks, HHS said.

The contracts are part of an effort to modernize the
health-care system with a national system of electronic
records. Supporters believe it will cut costs and reduce
medical errors, while opponents are concerned about privacy.