CNSI sues La. over canceled Medicaid contract
BATON ROUGE - The company hired to handle Louisiana's Medicaid system filed suit today against the state, saying the $200 million contract was improperly canceled by Gov. Bobby Jindal's administration.
Client Network Services. Inc., known as CNSI, wants compensation for the work they did, costs incurred, and other financial damages for harm to their reputation.
Jindal's administration canceled the contract on March 21 after word got out a federal grand jury was looking into how CNSI was hired. The company claims the Jindal administration hasn't yet said why the contract was canceled.
"DHH and the Administration continue to lob vague accusations against CNSI without producing one shred of evidence that termination of the contract is justified under the contract," said Kathryn Harris, senior vice president and general counsel for CNSI. "Despite repeated attempts under the Louisiana Public Records Law to obtain meaningful documents that may shed light on the rationale for CNSI's dismissal, the state has failed to provide substantive documentation in response to the request."
Health secretary Bruce Greenstein, who used to work for CNSI, resigned after the contract was ended. He denied having anything to do with the company winning the contract, but the Jindal administration accused him of having inappropriate contact with CNSI during the bid process.
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