Medicaid Health Plans: Are Application Service Providers Right for You?

Publication Date: December 2000

Publisher: California HealthCare Foundation

Author(s): Pat Kelly; Gregory LeGrow

Research Area: Health

Type: Report


This report addresses an alternative approach to obtaining the administrative applications and support necessary to run a health plan. This approach has the potential to reduce the need for capital investments, guarantee performance levels and application up-time, minimize maintenance, and lower total cost of ownership. The use of application service providers (ASPs) is a twist to service bureau and outsourcing offerings. It is important that Medicaid health plans understand the ASP approach to acquiring software and support so they can use it appropriately and to the benefit of their organization. This report is a guide for managed Medicaid plans to evaluate core administrative ASP vendor offerings against traditional licensing agreements.