(Alliance News) - Serco Group PLC on Thursday said it has been awarded a USD690 million contract by the US health department.
Serco is a Hampshire-based outsourcer, with a focus on defence, justice & immigration, transport, health, and citizen services.
It said the roughly four-and-a-half year deal will see it support the US Department of Health and Human Services, Centers for Medicare & Medicaid Services to determine if US citizens are eligible for healthcare insurance programmes.
The contract is due to start on July 1 and has a one-year base period alongside four other option periods. Should all options be exercised, the deal will be worth USD690 million.
"Serco will assist qualified citizens to receive health insurance through the Affordable Care Act by taking a unified approach to operational services, customer support, data analytics, and programme management, all aimed at continuously optimising service delivery and program integrity," Serco explained.
On Wednesday, Serco said its 2022 results and 2023 guidance will be in line with previous expectations. It is due to release its 2022 results on Tuesday next week, having been delayed from Thursday this week.
On Tuesday, the UK Financial Reporting Council said it is closing its investigation into Serco regarding its annual results for 2011 and 2012.
The probe centred on fraud relating to a contract with the UK government for the electronic tagging of prisoners. Serco was accused of charging the taxpayer for tagging prisoners who were dead, in prison or overseas.
Shares in Serco were down 0.4% to 151.20 pence each in London on Thursday afternoon.
By Greg Rosenvinge, Alliance News reporter
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Serco (SRP)