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The Honolulu Advertiser
Posted on: Wednesday, October 31, 2001

Dallas firm to run Queen's info tech

Advertiser Staff

The Queen's Medical Center has signed a seven-year contract with Dallas-based ACS Healthcare Solutions Inc. to manage its information technology systems in a move estimated to save the hospital $4.2 million.

The move will affect about 80 full-time employees, but only five full-time positions, one part-time position and one on-call position will be eliminated in the transition, said a spokeswoman for Queen's.

The remaining employees will stay at Queen's but be managed by ACS under the $27 million contract.

"This contract will improve our fiscal stability and bring us advanced information systems while offering our staff the opportunity to work with an international leader," said Dan Jessop, the center's chief operating officer and executive vice president.

Jessop said the move is a continued effort to counter the economic impact of the Balanced Budget Act over the three years since it reduced Medicare reimbursements to hospitals. The Queen's Medical Center has been losing millions of dollars as the reimbursements have fallen.

Queen's said it has 84 full-time workers in its information services department, all of whom will shift to ACS. About 53 of those will remain on the Queen's payroll; 26 will shift to the ACS payroll. The company said total compensation will be commensurate with current levels.

The contract takes effect Nov. 15.