Maine cuts ties with Mass. firm

Boston Herald - - BIZ SMART -

Maine Gov. Paul LePage’s ad­min­is­tra­tion is ter­mi­nat­ing his state’s con­tract with a Mas­sachusetts-based firm that was help­ing with the state’s Med­i­caid ap­pli­ca­tion process.

The Ban­gor Daily News re­ports the ad­min­is­tra­tion has ended a con­tract with Com­mon­wealth Medicine af­ter a year. The Shrews­bury com­pany had pre­vi­ously agreed to a 25-month con­tract worth $5.6 mil­lion from the Maine Depart­ment of Health and Hu­man Ser­vices.

The LePage ad­min­is­tra­tion se­lected Com­mon­wealth Medicine with­out eval­u­at­ing other bids.

Tax­pay­ers were slated to pay $300,000 more an­nu­ally for the con­tracted work com­pared to us­ing state em­ploy­ees. Costs also went over the bud­get pre­pared by the DHHS.

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