These days, state-government customers seeking var-implemented solutions may view Enterprise Resource Planning solutions as the Rubik’s Cube of IT: There are so many ways the project could take a bad twist that it may not be worth the time, trouble or expense to take it on.But solution providers and integrators are bringing clarity to the ERP puzzle, and states are biting, convinced that ERP won’t be an excessive burden on their resources or a daunting drain on their dollars.

These days, state-government customers seeking var-implemented solutions may view Enterprise Resource Planning solutions as the Rubik’s Cube of IT: There are so many ways the project could take a bad twist that it may not be worth the time, trouble or expense to take it on.

But solution providers and integrators are bringing clarity to the ERP puzzle, and states are biting, convinced that ERP won’t be an excessive burden on their resources or a daunting drain on their dollars. In fact, VARs are proving that ERP is the surest way for states to collect more tax dollars, pay vendors, catch deadbeat dads and achieve any number of other tasks–all either revenue-producing or cost-saving. In addition, those older, costly legacy systems are getting replaced. ERP’s shared-services tools reduce administrative costs, allowing employees more autonomy in pursuing routine tasks, such as job-applicant screening and driver’s-license processing. In other words, solution providers are touting ERP as a money-maker, not a revenue-drainer.

Take Accenture, a solution provider that’s seeing a great surge of ERP interest from state-government customers. The company is already working on ERP projects with the states of Ohio and Washington, and it’s tracking ERP opportunities in Tennessee and New York as well.

“There’s a lot of pent-up demand for this, ” says Mark Howard, the Denver-based global program director for government finance and performance management at Accenture. He also coordinates support for Accenture’s public-sector ERP projects globally.”What’s happening is a continuation of what started in the late 1990s. By 2001, the state-revenue picture looked somewhat cloudy, and putting food on the table for kids on state assistance was more important than implementing ERP. But the revenue picture has improved, and ERP is now back on the table, ” Howard says.

At a high level, ERP projects feature multimodule applications that cover a wide range of business operations, such as payment collections, inventory oversight, vendor interaction, customer service and order tracking. In many cases, they serve as the spine of government IT. These solutions though often demand that the organizational structure of a state government be revamped to ensure a successful transition.

While there are no exact numbers for state ERP market share or growth, industry execs say it’s clearly a burgeoning market. Cambridge, Mass.-based market researcher Forrester predicts a compound annual growth rate of 4.2 percent through 2008 for ERP solution packages. The ERP market is now worth $21 billion.

But many also caution that challenges exist when it comes to providing ERP solutions. In addition to much longer implementation schedules, these expensive projects also can easily become complex with customization and must be managed accordingly. (See “ERP Challenges To Keep In Mind, ” page 14.)Pain Points

Jim Krouse, manager of state-and-local government market analysis for Reston, Va.-based researcher Input, cautions that while ERP projects are touted as the “next big wave” of technology investment, there is work to be done for many states before going down that path. “Unfortunately, the systems are large and cumbersome for agencies to implement, and, most of all, expensive. More efforts for centralizing IT authority and consolidating operations must be done in many jurisdictions before a comprehensive ERP application can be tackled, ” Krouse says. “The most likely scenario is that ERP will be put into place in stages, with payroll functions likely being the first phase. Additional phases will be addressed as the centralization and consolidation efforts are accomplished.”But that isn’t stopping some states from aggressively pursuing the deployment of ERP solutions.

“States are implementing ERP projects for many reasons, ” says Bishwajeet Chatterjee, president of CNSI, a Rockville, Md.-based integrator that has worked on ERP projects for customers such as the state of Maine. “They need to improve, update or replace their legacy equipment. They need to consolidate multiple standalone systems that perform similar functions. And they need to meet higher regulatory standards, such as Sarbanes-Oxley and HIPAA.”There’s another value proposition: the expanded opportunity to introduce new, commercial, off-the-shelf (COTS) solutions that will improve agency operations, either immediately or in the near future.

“Commercial, off-the-shelf solutions allow for functionality that would be impossible or costly to retrofit into a legacy environment, ” Chatterjee says. “Also, COTS software often includes features that may not be used today but could be turned on in the future to expand the use of the product. ERP can provide states with a single solution that covers multiple areas. You can use Oracle’s finance and HR solutions together. That means there’s only one technology to adapt, one platform and one integrated tech-support team.”The Dollar FactorRedwood Shores, Calif.-based Oracle is seeing a huge surge of interest in these solutions among state customers, with more than 33 running at least some ERP-style application in at least one state agency. Right now, 19 of its state-government customers are considering launching ERP. “A new culture of leadership and management is evolving as new policy-makers assume the mantles of leadership, ” says J.D. Williams, Oracle’s director of state and local government markets. “A single source of truth that can be provided by integrated enterprise information systems is needed to give these managers and policy-makers the information to more effectively run governments.”North Dakota, among other states, is using Oracle’s ERP tools to standardize its public-university system and agencies, saving $9.9 million annually in the process. And Delaware is using Oracle’s products to replace paper-based procedures within its human-resources operations in agencies, schools and legislative bodies.

Herndon, Va.-based DLT Solutions, a solution provider and Oracle partner on state ERP projects, is finding much interest in ERP as a means of managing complex financial responsibilities. But, as with any large project, there are challenges and pitfalls to avoid, especially since state customers often want to implement ERP in smaller stages with COTS products.”Once you start down the path of customization, you open yourself up to expensive, unforeseen hurdles, not to mention ‘scope creep’ as conditions, trends and administrations change, ” says Rick Marcotte, president and CEO at DLT. “Integrators walk a fine line between what is realistically achievable and what the states are requiring to win a contract. Our philosophy has been to err on the conservative side in what we’re able to deliver and to set realistic expectations about the cost and scope of customization. We’ve walked away from some contracts that appeared to be lucrative on the surface but could become quagmires down the road.”Ohio officials looked into ERP more than six years ago when Governor Bob Taft gathered private executives and state employees into management-improvement teams. The result has been a project in which solution provider Accenture was recently selected to team up with Oracle.This December, the first implementation to result from that partnership will go live for the state’s human-resources employees. A solution for the finance group is set to launch in July 2007.

“We developed over 2, 100 requirements back when we did our business-needs analysis. We have been working with Accenture and the other team members to ensure that we will roll it out the way we expected to, ” says Mary Carroll, CIO of the state of Ohio. “But we’re also paying a good deal of attention to change management. We have put in place what we call agency implementation team leads, and we have a lot of communications between the project office and the agency teams.”Early this year, the state of Wisconsin came out with a bid for that state’s ERP project. Wisconsin CIO Matt Miszewski says he expects the ERP implementation to be staggered over the next five years. With the reduction in duplicate systems, the state expects to save $513 million over 10 years. “For us, that’s a compelling case to go ahead and dive in, ” Miszewski says. “But there’s a lot of investment involved, too. We’ve been meeting with our business areas for the past four months to make sure we understand their business model so the system we implement can support them.”These lengthy projects though prove fruitful for the solution providers and integrators involved. New York-based solution provider Deloitte Consulting found itself in the midst of a high-cost ERP project–$250 million–for the Commonwealth of Pennsylvania several years ago. Most projects, executives there say, run $50 million to $100 million.”The ERP trend accelerated during Y2K, as states had to modify or replace their legacy systems to handle the new century, ” says Bob Campbell, principal, vice chairman and national managing director of U.S. public-sector business for Deloitte. “But Y2K was followed by state budget shortfalls coupled with the [Sept. 11] terrorism attacks, which put a hold on state spending on new systems.

“These measures essentially created a delay for ERP-styled administrative projects, in spite of the growing demand. But today, some states are looking for ways to make projects pay for themselves by launching them first in the finance/revenue-producing parts of their agencies.When you can convince state officials that the IT solutions can actually generate revenue and pay for themselves, internal customer resistance is broken down. “We’re working with the state of Florida to use ERP software for integrated tax administration. The system has already paid for itself several times over, ” Campbell says. “In addition, we have been selected by Florida to configure ERP for another large revenue-producing area–child-support enforcement collections and management.”Accenture has also found this to be key. “Now, state-government customers know they need to do administrative processes better, ” Howard says.Showing ResultsAfter implementation, the challenge is to prove that the ERP is a revenue-generating tool. “It can be as mundane as showing how much more quickly check requests are turning over. It can be as critical as pointing out how tax-revenue collections are improving, ” Howard says. “We think ultimately we’ll be able to show that [ERP] improves significantly the way state government does business.”

As 2005 marked the 40th anniversary of Medicaid, policy makers and politicians alike told us the program is unsustainable. In 2004, Medicaid consumed 25 percent of states’ budgets, and costs were expected to rise 12 percent by the end of 2005. Why? The current Medicaid system is riddled with inefficiencies; it fails to provide consistently high quality healthcare because of medical errors, poor communication, incomplete records and rising insurance costs.These inefficiencies have been highlighted in recent months with natural disasters such as Hurricanes Katrina and Rita.

As 2005 marked the 40th anniversary of Medicaid, policy makers and politicians alike told us the program is unsustainable. In 2004, Medicaid consumed 25 percent of states’ budgets, and costs were expected to rise 12 percent by the end of 2005. Why? The current Medicaid system is riddled with inefficiencies; it fails to provide consistently high quality healthcare because of medical errors, poor communication, incomplete records and rising insurance costs.These inefficiencies have been highlighted in recent months with natural disasters such as Hurricanes Katrina and Rita. In the aftermath of these catastrophes, thousands of evacuees who received Medicaid benefits struggled to re-enroll in the program and to qualify for benefits in new states. This lack of efficiency and integrated data within the Medicaid system is something that impacts the quality of care for millions of Medicaid patients across the country every day–in good weather and bad.

Medicaid Lives Through Katrina Every Single DayMedicaid serves 53 million Americans and spends more than $300 billion a year. However, huge portions of the population visit emergency rooms and are treated like they have no medical history–because, in many cases, they do not. There’s no record of medications they take, previous tests administered or other valuable data that could be applied to provide better, more efficient care.

This problem gained considerable attention following Katrina when the U.S. Department of Health and Human Services developed a Medicaid waiver authority streamlining the eligibility determination process to make decisions in a few days instead of a few weeks. This is minor progress that only occurred because of extreme situations. Medicaid fails to have the same approach on critical, everyday issues that require analysis. But before we can explain what needs to be done, we must have a better understanding of where Medicaid faces the greatest pressure.

In 2003, Medicaid eclipsed Medicare as the largest payer of medical claims in the United States, and it continues to grow. While the program’s overall growth is important to understand, it is even more important to understand where the greatest expenses are incurred. According to a study by the Kaiser Commission on Medicaid and the Uninsured, since 2002 the top three factors increasing state Medicaid spending are healthcare costs, enrollment growth and prescription drug costs (Medicaid Budgets, Spending and Policy Initiatives in State Fiscal Years 2005 and 2006, Pub #7392).

Who spends these funds? When most people think of Medicaid, they think about treatment for mothers and children. However, Medicaid has seen a major shift in the population for which it provides care.In reality, less than 25 percent of the Medicaid population spends more than 70 percent of the program’s budget. The cost of providing healthcare to a healthy mother or child is roughly $155 per person per month, or a little less than $2, 000 a year. The cost of providing services for the 25 percent who spend more than 70 percent of the Medicaid budget eclipses $4, 000 a month, nearly $50, 000 per person per year. That said, the majority of the Medicaid budget is not treating mothers and children as once commonly believed.

Each of the millions of Medicaid enrollees consumes services from several different divisions–medical care, mental health, and long-term care. However, Medicaid is not designed in a way that makes it easy for these different divisions to communicate with each other: Every time a patient is seen by a different provider offering services for a different division, providers create new patient record information. This is not only extremely inefficient, but it also fails to leverage existing health data to improve processes, increase efficiencies and, ultimately, provide better care.

Medicaid Revolution Through IT EvolutionSince the beginning of the Medicaid program 40 years ago, the most common reforms for reducing costs and improving efficiency have been: 1) cutting eligibility; 2) cutting reimbursement and/or; 3) cutting benefits. This has never been an effective approach because cost cutting deprives people of care they need. Not a very good approach for an organization whose mission is to focus on the wellbeing of citizens, not just the bottom line.

The fourth and largely overlooked option to empower Medicaid reform is leveraging technology to increase efficiency. Information technology can have a significant impact on Medicaid reform, but it must become a useful tool for the provider community in a way that does not take more effort than it is going to be worth.

Today Medicaid possesses the rudimentary technology systems and a robust set of data that is continuously updated, yet it is rarely used for anything other than paying claims. This lack of planning and insufficient information sharing means Medicaid systems do an insufficient job managing patient care, while valuable information that can help states and providers improve patient outcomes sits stunningly underused in data warehouses.Components of state Medicaid programs are all expenditures from the same source; however, information is only shared between programs for the purpose of paying bills. States are not thinking about how to improve the utility of their Medicaid IT systems. Why? In order to convince Medicaid CIOs to implement a more integrated system that treats patients holistically, there must be a change in mindset. This represents a new risk: Paying claims is a necessity, but keeping electronic patient records is optional.

With relatively minimal effort, administrative, claims, eligibility and other existing data sets can be used to make the patient the unit of analysis, rather than segmented programs. Electronic Medicaid health records can then be developed and, in nearly real-time, this data can create a dashboard giving administrators a detailed look at the system. What is Medicaid spending the most money on? Who is it spending the most money on? How much money is wasted on duplication? How much money is wasted on nonoptimal care settings? What would the impact be if existing care were simply managed better? This data exists, just not in a way that is shared among Medicaid departments or organized in a meaningful manner.

A Medicaid technology evolution can go even further. By incorporating predictive modeling technology, states can turn existing claims paying data into data that tells a story about a patient. But it is not good enough to keep this information within Medicaid walls. Patients, providers and medical institutions need access to this information so they can become part of the solution.

Imagine if states developed Web-based information portals where providers could easily determine who their sickest patients are, by name and disease, not just the total number of them? What if states enabled providers to use predictive modeling to help them understand who their sickest patients will be without intervention? Again, with 25 percent of the Medicaid population consuming 70 percent of the budget, everyone involved could act more efficiently for top to bottom benefits.

For example: With evidence-based data and predictive modeling, providers could devise a strategy to improve the health of 240 Medicaid patients on their caseload with chronic diabetes. They could make informed decisions about treatment plans, actively engaging the patients in their own care. States could even be so bold as to incent physicians for improving the health of these patients.By presenting this information to providers in an easy-to-use Web portal, physicians could more easily identify patients who cost a lot to manage, helping them get a better idea of who their patients are and how they can solve their medical problems. Everybody wins in this scenario: Patients receive better care and Medicaid runs more efficiently.

Visionary MMIS and Intermediary StepsState Medicaid programs need to focus on increasing efficiency by maximizing data they already have, reducing duplicative and unnecessary care, and increasing integrated and evidence-based treatment. Sharing information among providers, focusing on care management, leveraging predictive modeling, creating portals to help payers and providers make better decisions–all of these things are key to creating a sustainable Medicaid program.Transforming Medicaid management information systems into more than sophisticated claims payment systems is a long-term goal that has the potential to revolutionize Medicaid reform. However, intermediary steps can be taken; we may be years away from ubiquitous electronic patient records, but the information needed to make these basic changes exists today. Ultimately, it comes down to better communication within Medicaid. Technology is the platform for this change and, until it comes, Medicaid and the Americans it cares for will continue to live through Katrina day after day.

ROCKVILLE, MD — CNSI, a fast growing, innovative provider of IT business solutions for government and commercial enterprises, today announced it won a major re-compete contract to provide ongoing maintenance, help desk support, formal training and enhancements to the Web-based version of the Boating Accident Report Database (BARD-Web) System. Developed by CNSI in collaboration with State accident reporting authorities, BARD-Web enables the 50 states, five U.S. territories, the District of Columbia, and the U.S.

ROCKVILLE, MD — CNSI, a fast growing, innovative provider of IT business solutions for government and commercial enterprises, today announced it won a major re-compete contract to provide ongoing maintenance, help desk support, formal training and enhancements to the Web-based version of the Boating Accident Report Database (BARD-Web) System. Developed by CNSI in collaboration with State accident reporting authorities, BARD-Web enables the 50 states, five U.S. territories, the District of Columbia, and the U.S. Coast Guard to quickly disseminate accident report data over a secured network.”CNSI has a proven track record of providing innovative technology solutions for the government agencies that keep our country safe, ” said CNSI President and CEO B. Chatterjee. “We look forward to continuing our relationship with the U.S. Coast Guard and introducing additional support and enhancements to make BARD-Web an even more valuable tool.”The BARD-Web system supports the Coast Guard’s implementation of a uniform vessel accident reporting system as required under Title 46 U.S.C., ? 6102.

BARD-Web reflects the Coast Guard’s commitment to data sharing by enabling local, state and territory law enforcement officers to electronically transfer accident report data to one central location via an Internet connection and a Web browser. BARD-Web provides the capability for all reporting authorities to query data and generate reports for a specific jurisdiction, region, or for the entire nation.”Applications like BARD-Web can be used as a valuable component in an emergency response network, ” said the U.S. Coast Guard’s Office of Boating Safety Contracting Officer’s Technical Representative Bruce Schmidt. “In these times where security, safety and disaster recovery are ongoing concerns, information technology plays a critical role in sharing data across local, state and federal agencies to ensure immediate and effective responses to any threat.”The vision for BARD-Web is a knowledge-based system that promotes interoperability where (1): state/local personnel input casualty data at the scene; (2) casualty data are quickly disseminated and transformed into statistical information that can be used by state and federal officials to target at-risk populations; and (3) statistical information is transformed into knowledge and ultimately intelligence that can be applied to enhance the safety and security of the public using our nation’s waterways.

About CNSI

Founded in April 1994, CNSI is a premier provider of IT business solutions for government and commercial enterprises. Based in Rockville, Md., CNSI delivers technology and resource expertise that improve the efficiency and productivity of IT systems.Focused on supporting clients that ensure the safety, health, and efficiency of the nation, CNSI serves customers such as the Department of Homeland Security, Federal Aviation Administration, Department of Energy, and several state Medicaid agencies. Over the last 10 years, CNSI has earned top industry honors and regular inclusion in the Inc. 500, VAR Business 500, and the Techway Fast 50 lists for consistently high revenue growth. Additional information about CNSI can be obtained by visiting http://www.cns-inc.com, emailing vmehta@cns-inc.com or calling (301) 634-4600.

Energy Enterprise Solutions LLC won a $1 billion contract from the Energy Department to provide consolidated information technology services, one of the largest federal IT services contracts ever awarded to a small business.Other contractors on the EES-Energy Department team are ASRC Airfield and Range Services Corp., Booz Allen Hamilton Inc., CNSI Inc., Computer Sciences Corp., DSD Laboratories Inc., e-Management Inc., Highland Technology Services Inc., International Business Machines Corp., Project Performance Corp., Qwest Communications International Inc.’s federal systems divisio

Energy Enterprise Solutions LLC won a $1 billion contract from the Energy Department to provide consolidated information technology services, one of the largest federal IT services contracts ever awarded to a small business.

Other contractors on the EES-Energy Department team are ASRC Airfield and Range Services Corp., Booz Allen Hamilton Inc., CNSI Inc., Computer Sciences Corp., DSD Laboratories Inc., e-Management Inc., Highland Technology Services Inc., International Business Machines Corp., Project Performance Corp., Qwest Communications International Inc.’s federal systems division, Science Applications International Corp., and Verizon Communications Inc.’s federal network systems division.

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ROCKVILLE, MD –CNSI, a fast growing, innovative provider of IT business solutions for government and commercial enterprises, today announced the availability of its Electronic Vital Records System (EVRS), a comprehensive, Web-based solution that enables states to create and manage vital events such as birth, death, marriage, divorce and fetal death.

ROCKVILLE, MD –CNSI, a fast growing, innovative provider of IT business solutions for government and commercial enterprises, today announced the availability of its Electronic Vital Records System (EVRS), a comprehensive, Web-based solution that enables states to create and manage vital events such as birth, death, marriage, divorce and fetal death. The company also announced the State of New Hampshire has successfully deployed EVRS statewide, making New Hampshire the first in the country to deploy a fully integrated, 100 percent Web-based vital records management system.

EVRS enables states to manage all aspects of their vital events management including data collection, editing, record registration, certificate issuance, fee collection, document control number tracking, safety paper inventory control, statistical analysis, enterprise reporting, and information dissemination. EVRS provides funeral homes, hospitals, town and city clerks, certifying physicians, and authorized healthcare facilities with a Web-based system to register vital events data directly into a centralized data repository over a secure Internet connection. EVRS is the only Web-based vital records system in the market today that is 100 percent compliant with the National Center for Health Statistics (NCHS) 2003 revised certificate specifications, as well as with security guidelines for the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Its System Management Console enables designated administrators to configure and assign rights to users and groups, ensuring the right people have access to the right information. Furthermore, New Hampshire’s EVRS includes the Online Verification Software interface required to communicate real-time fact of death information to the Social Security Administration.”Tracking vital events data is a fundamental process that takes place in each and every state, involving the creation of thousands of records and certificates, ” said CNSI President B. Chatterjee. “Automating the process with EVRS, CNSI ensures state agencies interact with citizens and agencies in an efficient and timely manner. It is another great example of CNSI’s dedication to helping government agencies operate at peak efficiency through better IT systems.”

New Hampshire: Improved Efficiency & Accuracy Through EVRS The State of New Hampshire selected CNSI in order to centralize their vital records data and capitalize on CNSI’s innovative Web-based technology. EVRS enables New Hampshire’s 120 funeral directors, 27 hospitals, 234 town/city clerk offices and authorized certifying physicians and health care facilities to register all vital event data into the State’s centralized Vital Records database.”Vital event data is extremely important to the State of New Hampshire-it not only provides valuable insight into the population, but it also represents some of the most common ways citizens interact with the state – issuing birth, death and divorce certificates, ” said William R. Bolton, Jr., State Registrar and Director, Division of Vital Records Administration. “CNSI’s vital events system provides real time access to extremely accurate and high quality data, enabling the State to make best use of the information collected such as bioterrorism monitoring and tracking emerging infectious diseases.”

New Hampshire’s EVRS went live in April 2004 and routes all the information pertaining to New Hampshire’s 10, 000 deaths, 15, 000 births, 5, 000 divorces, and 10, 000 marriages each year. With records dating back to 1640, the system performs all Vital Record Office tasks, from the capture or registration of the vital event to creating and running statistical reports and printing legal certificates. The solution is also used to collect fees and provide online data verification with the Social Security Administration.This centralized approach to data capture has not only reduced state maintenance costs but also increased the timeliness of the State’s vital event information resulting in better customer service and more detailed reporting. With data accuracy of near-100 percent, the New Hampshire EVRS is among the nation’s top five percent most accurate vital records programs.

About CNSI

Founded in April 1994, CNSI is a premier provider of IT business solutions for government and commercial enterprises. Based in Rockville, Md., CNSI delivers technology and resource expertise that improve the efficiency and productivity of IT systems.Focused on supporting clients that ensure the safety, health, and efficiency of the nation, CNSI serves customers such as the Department of Homeland Security, Federal Aviation Administration, Department of Energy, and several state Medicaid agencies. Over the last 10 years, CNSI has earned top industry honors and regular inclusion in the Inc. 500, VAR Business 500, and the Techway Fast 50 lists for consistently high revenue growth. Additional information about CNSI can be obtained by visiting http://www.cns-inc.com, emailing vmehta@cns-inc.com or calling (301) 634-4600.

ROCKVILLE, MD –CNSI, a fast growing, innovative provider of IT business solutions for government and commercial enterprises, today announced it has been named to Deloitte’s prestigious Maryland Technology Fast 50 Program, a ranking of the 50 fastest growing technology companies in the area by Deloitte & Touche LLP, one of the nation’s leading professional services organizations.

ROCKVILLE, MD –CNSI, a fast growing, innovative provider of IT business solutions for government and commercial enterprises, today announced it has been named to Deloitte’s prestigious Maryland Technology Fast 50 Program, a ranking of the 50 fastest growing technology companies in the area by Deloitte & Touche LLP, one of the nation’s leading professional services organizations. Rankings are based on the percentage revenue growth over five years from 2000-2004.CNSI’s increase in revenues of 203% from 2000-2004 earned the company a ranking of 26 in the Maryland Technology Fast 50.”Being named to the Maryland Technology Fast 50 for the fifth consecutive year is a testament to the hard work and dedication of CNSI’s employees, ” said CNSI President B. Chatterjee. “Our consistent revenue growth is driven by CNSI’s success providing innovative, technical solutions that solve our customers’ greatest, mission-critical challenges.”The Maryland Technology Fast 50 Program is hosted by Deloitte & Touche LLP, along with Wilmer, culter, Pickering, Hale and Dorr and media sponsors PR Newsire and WTOP Radio Network.To qualify for the Technology Fast 50, companies must have had operating revenues of at least $50, 000 in 2000 and $1 million in 2004, be headquartered in North America, and be a “technology company” defined as a company that owns proprietary technology that contributes to a significant portion of the company’s operating revenues; or devotes a significant proportion of revenues to the research and development of technology. Using other companies’ technology in a unique way does not qualify.Winners of the 15 regional Fast 50 programs in the United States and Canada are automatically entered in Deloitte & Touche’s Fast 500 program, which ranks North America’s top 500 fastest growing technology companies. For more information on Deloitte’s Technology Fast 50 or Fast 500 programs visit www.fast500.com.

About CNSI

Founded in April 1994, CNSI is a premier provider of IT business solutions for government and commercial enterprises. Based in Rockville, Md., CNSI delivers technology and resource expertise that improve the efficiency and productivity of IT systems.Focused on supporting clients that ensure the safety, health, and efficiency of the nation, CNSI serves customers such as the Department of Homeland Security, Federal Aviation Administration, Department of Energy, and several state Medicaid agencies. Over the last 10 years, CNSI has earned top industry honors and regular inclusion in the Inc. 500, VAR Business 500, and the Techway Fast 50 lists for consistently high revenue growth. Additional information about CNSI can be obtained by visiting http://www.cns-inc.com, emailing vmehta@cns-inc.com or calling (301) 634-4600.

About Deloitte

Deloitte refers to one or more of Delloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice focused on client service through a global strategy executed locally in nearly 150 countries. With access to the deep intellectual capital of 120, 000 people worldwide, Deloitte delivers services in four professional areas-audit, tax, consulting and financial advisory services-and serves more than one half of the world’s largest companies, as well as large national enterprises, public institutions, locally important clients and successful, fast-growing global growth companies. Services are not provided by the Deloitte & Touche Tohmatsu Veirein, and, for regulatory and other reasons, certain member firms do not provide services in all professional areas.As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names “Deloitte, ” “Deloitte & Touche, ” “Deloitte Touche Tohmatsu, ” or other related names.In the U.S., Deloitte & Touche USA LLP is the member firm of Deloitte Touche Tohmatsu, and services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Tax LLP, and their subsidiaries) and not by Deloitte & Touche USA LLP. The subsidiaries of the U.S. member firm are among the nation’s leading professional services firms, providing audit, tax, consulting, and financial advisory services through nearly 30, 000 people in more than 80 cities. Known as employers of choice for innovative human resources programs, they are dedicated to helping their clients and their people excel. For more information please visit the U.S. member firm’s website at www.deloitte.com/us.

ROCKVILLE, MD — In the aftermath of Hurricane Katrina, thousands of evacuees who received Medicaid benefits struggle to reenroll in the program and to qualify for benefits in new states.

ROCKVILLE, MD — In the aftermath of Hurricane Katrina, thousands of evacuees who received Medicaid benefits struggle to reenroll in the program and to qualify for benefits in new states. While this has underscored the need for electronic patient records, the lack of efficiency and integrated data within the Medicaid system is something that impacts the quality of care for millions of Medicaid patients across the country every day–in good weather and bad.According to CNSI VP of Healthcare Bruce Greenstein, “The state of disarray of medical records in the aftermath of Hurricane Katrina only reinforces the need for improved Medicaid efficiency. Medicaid serves 53 million Americans and spends more than $300 billion a year, and the program literally lives through situations like Katrina every single day. Every day, huge portions of the Medicaid population visit doctors’ offices and emergency rooms and because there are no medical records for many patients, they are treated like refugees from somewhere else, even in their home town.”

The problem? Cutting costs is not a long-term solution if it does not address the underlying cause of the problem: 25% of enrollees spend 75% of the budget.

The solution? State Medicaid programs need to focus on increasing efficiency through maximizing data they already have, reducing duplicative and unnecessary care, and increasing integrated and evidenced-based treatment. Sharing information among providers, focusing on care management, leveraging predictive modeling, creating portals to help payers and providers make better decisions–all of these things are key to creating a sustainable Medicaid program. Without focusing on how to improve Medicaid IT systems to boost efficiency, States are not solving the problem.

As States are attempting to modernize their Medicaid programs, many are designing major overhauls to their Medicaid IT systems. Greenstein encourages States to explore ways to increase efficiency and provide appropriate care through the application of health information technology.About Bruce GreensteinAs CNSI’s vice president of healthcare, Bruce Greenstein is actively engaged in helping states achieve increased efficiency through creating leading-edge IT infrastructure. A Medicaid visionary with frontline experience, before joining CNSI, Greenstein was the Associate Regional Administrator for the Division of Medicaid and Children’s Health in the Boston Regional Office of Centers for Medicare and Medicaid Services (CMS). He oversaw all aspects of Medicaid operations, including program administration and financial management, for the New England region overseeing $16 billion in health care spending.If you would like to speak with Bruce Greenstein, please contact Kristin Martell at (301) 634-4612 or kristin.martell@cns-inc.com.

About CNSI

Founded in April 1994, CNSI is a premier provider of IT business solutions for government and commercial enterprises. Based in Rockville, Md., CNSI delivers technology and resource expertise that improve the efficiency and productivity of IT systems.Focused on supporting clients that ensure the safety, health, and efficiency of the nation, CNSI serves customers such as the Department of Homeland Security, Federal Aviation Administration, Department of Energy, and several state Medicaid agencies. Over the last 10 years, CNSI has earned top industry honors and regular inclusion in the Inc. 500, VAR Business 500, and the Techway Fast 50 lists for consistently high revenue growth. Additional information about CNSI can be obtained by visiting, http://www.cns-inc.com, emailing vmehta@cns-inc.com or calling (301) 634-4600.

ROCKVILLE, MD –CNSI, a fast growing, innovative provider of IT business solutions for government and commercial enterprises, today announced a new addition to its management team. The company named former Associate Regional Administrator for the Division of Medicaid and Children’s Health in the Boston regional office of the Centers for Medicare and Medicaid Services (CMS) Bruce Greenstein as Vice President of Healthcare.

ROCKVILLE, MD –CNSI, a fast growing, innovative provider of IT business solutions for government and commercial enterprises, today announced a new addition to its management team. The company named former Associate Regional Administrator for the Division of Medicaid and Children’s Health in the Boston regional office of the Centers for Medicare and Medicaid Services (CMS) Bruce Greenstein as Vice President of Healthcare. Greenstein will play a critical role at CNSI providing guidance and direction for the company’s healthcare offerings and identifying new market opportunities.”CNSI prides itself on working with the best and the brightest to deliver premier, tailor-made technology solutions for its customers, ” said CNSI President B. Chatterjee. “In keeping with that tradition, we welcome Bruce’s well-respected expertise in Medicaid administration and the impact he will have on our groundbreaking healthcare and Medicaid Management Information System offerings.”Greenstein began his career in healthcare at the state level under former Governor Chiles’ Administration in Florida where his primary responsibilities included developing managed care plans, reorienting home and community-based services and streamlining the provision of long-term care services for the Florida Department of Elder Affairs.Greenstein went on to serve under the Division of Medicaid and State Operations in CMS’ Seattle Regional office, where he focused on Medicaid eligibility policy, waivers, welfare reform and Medicaid operations.

At the federal level, Greenstein then joined the U.S. Government Accountability Office’s (GAO) Health Care Group in Seattle, where he co-authored blue book reports and Congressional testimony on Medicaid managed care and children’s health screenings, long-term care, the Olmstead Act, and hospital finance and emergency department operations.”I have gained perspective on Medicaid by working on the movement from the ground up. Along the way, I realized that more had to be done in order for Medicaid to run smoothly, ” said Greenstein. “I have chosen to join CNSI because through our customers and partners, I can help instill the kind of change that the Medicaid system needs most. Already, CNSI has, by far, the most superior MMIS product on the healthcare market. I want to help add to this momentum by providing states the ability to move from being payers of Medicaid services to being purchasers of outcomes.”CNSI’s MMIS uses Web-based technology to address the regulatory changes, business process changes, and technological changes facing state Medicaid agencies today. CNSI sees the future of the healthcare marketplace as one where consumers use the power of the Internet to receive focused information and tailored health management programs.

About CNSI

Founded in April 1994, CNSI is a premier provider of IT business solutions for government and commercial enterprises. Based in Rockville, Md., CNSI delivers technology and resource expertise that improves the efficiency and productivity of IT systems.Focused on supporting clients that ensure the safety, health, and efficiency of the nation, CNSI serves customers such as the Department of Homeland Security, Federal Aviation Administration, Department of Energy, and several state Medicaid agencies. Over the last 10 years, CNSI has earned top industry honors and regular inclusion in the Inc. 500, VAR Business 500, and the Techway Fast 50 lists for consistently high revenue growth. Additional information about CNSI can be obtained by visiting http://www.cns-inc.com, emailing vmehta@cns-inc.com or calling (301) 634-4600.

ROCKVILLE, MD –CNSI, a fast growing, innovative provider of IT business solutions for government and commercial enterprises, today hosted Lt. Gov. Steele with CNSI President Maryland Lieutenant Governor Michael Steele at its Rockville headquarters. Steele visited with employees to learn about CNSI’s growth and success as a graduate of the state’s Minority Business Enterprise (MBE) program.

ROCKVILLE, MD –CNSI, a fast growing, innovative provider of IT business solutions for government and commercial enterprises, today hosted Lt. Gov. Steele with CNSI President Maryland Lieutenant Governor Michael Steele at its Rockville headquarters. Steele visited with employees to learn about CNSI’s growth and success as a graduate of the state’s Minority Business Enterprise (MBE) program. The program provided assistance to CNSI during its 1994 founding that helped it become the successful, employee-owned minority business it is today with 850 professionals and 2004 revenue of $76.3 million.

During his visit, Steele also learned about the many state and federal agencies that depend on CNSI technology solutions like Maryland’s Department of Health Lt. Gov. Steele with CNSI Employees and Mental Hygiene, Department of Public Safety and Correctional Services and the Port of Baltimore. CNSI executives highlighted the company’s recent successes in support of the Department of Homeland Security and the technological advancements in Medicaid Management Information Systems – a critical component to help states streamline its IT infrastructure and transition from being payers of claims to purchasers of health outcomes.

About CNSI

Founded in April 1994, CNSI is a premier provider of IT business solutions for government and commercial enterprises. Based in Rockville, Md., CNSI delivers technology and resource expertise to improve the efficiency and productivity of IT systems.Focused on supporting clients that ensure the safety, health, and efficiency of the nation, CNSI serves customers such as the Department of Homeland Security, Federal Aviation Administration, Department of Energy, and state Medicaid agencies. Over the last 10 years, CNSI has earned top industry honors and regular inclusion in the Inc. 500, VAR Business 500, and the Techway Fast 50 lists for consistently high revenue growth. Additional information about CNSI can be obtained by visiting www.cns-inc.com, emailing vmehta@cns-inc.com or calling (301) 634-4600.

State governments are spending heavily on long-deferred overhauls of their Medicaid Management Information Systems (MMIS). Industry experts say they haven’t seen so many procurements in years.Between $1.3 billion and $1.6 billion worth of MMIS contracts will be up for grabs in the next 18 months, according to government market researcher Input.

State governments are spending heavily on long-deferred overhauls of their Medicaid Management Information Systems (MMIS). Industry experts say they haven’t seen so many procurements in years.Between $1.3 billion and $1.6 billion worth of MMIS contracts will be up for grabs in the next 18 months, according to government market researcher Input. Through fiscal year 2008, $4.1 billion worth of MMIS contracts may come up for competition.”In 2005, eight to 10 contracts will come up for bid, and probably another half dozen early in 2006, ” says Ray Hanley, vice president for state health and human services with Plano, Texas-based Electronic Data Services (EDS). “It’s busier than anyone can remember.””The last nine months have been the most significant that we’ve seen in years, ” agrees John Crysler, senior vice president of operations for state health care with Affiliated Computer Services (ACS) of Dallas.

To save money and staff, most states outsource MMIS development and fiscal-agent services. Thirty-eight states already outsource and nine more are expected to make the switch. The outsourced MMIS market is poised to grow 20 percent to more than $6 billion during the next three years, Input predicts.

While large solution providers dominate the MMIS market–the leaders being EDS with 18 states; ACS with 13; and Unisys, five–midsize solution providers are finding states more open to new prime contractors. Last October, Client Network Services Inc. (CNSI) of Rockville, Md., wrested a $180 million, three-year contract to modernize and maintain Washington State’s MMIS from incumbent ACS. Previously, CNSI built a smaller MMIS for Maine. Company president B. Chatterjee says some states are looking for fresh approaches to their Medicaid challenges.

“We try to give solutions that haven’t been offered before, ” he says. “Established players are offering established solutions. We have the ability to build a new system based on the latest technologies.”In addition, prime contractors often turn to smaller firms for specialized clinical, customer-service and case-management components. Crysler says ACS engages subcontractors with expertise integrating CRM, call-center and mainframe-to-Web software.

Subcontractors “have to bring some value that EDS doesn’t offer, like expertise with storage-management or pharmacy POS systems, ” EDS’ Hanley adds.Opportunities to do business directly with Medicaid agencies are increasing as more states adopt the Medicaid Information Technology Architecture (MITA), which emphasizes interoperability, industry standards and off-the-shelf software, and enables vendors to link their products directly to MMIS data warehouses.”States are looking for flexibility and open standards so they can add new programs and change guidelines more easily, ” says Holli Ploog, vice president and managing partner of Unisys Global Public Sector Marketing and Programs. “Unisys often goes into a bid with three or four partners, “including vendors of pharmacy-benefits-management systems, document-management integrators and workflow-design specialists.

For example, solution provider Gold Standard Multimedia of Tampa, Fla., is able to retrieve the medication histories of Medicaid patients and deliver them to doctors’ PDAs via wireless WANs. Combined with Gold Standard’s drug-interaction alert and electronic-prescribing software, the eMPOWERx system has helped Florida reduce dangerous and costly prescription errors, minimize paperwork and prevent fraud, saving the state an estimated $700 per doctor monthly.

Looking forward, electronic medical records (EMR) and health-information networks may take center stage in government health-care IT budgets when the MMIS rush ends in approximately three years. Last September, the federal Agency for Healthcare Research and Quality awarded $139 million in contracts and grants to promote the use of EMRs through the development of public/private regional health-information networks for sharing clinical data among providers. President George Bush is seeking an additional $125 million in FY 2006.