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Northrop-Led Team Awarded $92M Contract to Update CMS’ Fraud Prevention System

healthcare-systemA team led by Northrop Grumman (NYSE: NOC) has been awarded a potential five-year, $91.6 million contract to update a technology platform that the Centers for Medicare and Medicaid Services uses to identify improper, fraudulent and wasteful Medicare payments.

The company will lead a team comprising of seven contractors to build the second version of CMS’ current Fraud Prevention System,  Northrop said Tuesday.

Amy Caro, vice president of health solutions at Northrop’s technology services unit, said the company has supported CMS’ efforts to combat healthcare fraud over the past 20 years.

The company built the FPS 1.0 infrastructure to employ predictive analytics,  claim editing algorithms, business intelligence tools as well as a user interface designed to help program investigators to manage fraud investigations, evidence and rulings.

Northrop’s team members on the FPS modernization contract are HPE, All Points, Analytica, CGS Administrators, Softrams,  Truven Health Analytics and Waypoint.

The contract contains one base year and four option years.

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