Regions

Serco gains U.S. health contract worth US$1.25 billion

July 2
10:41 AM 2013

Serco, a British outsourcing group, obtained a deal with the US Department of Health. The contract was about US$1.25 billion as announced in a record on the federal contracting website.

Serco would manage applications for Qualified Health Plans, Medicaid and other insurance affordability programs. It would start on October 1 and would last for a year. The 12-month contract was worth GBP114 million.

The deal's total worth was $1.25 billion including four possible 12-month extensions and extra tasks.

In March 2010, US President Barack Obama agreed with a comprehensive overhaul of the US$2.5 trillion healthcare network. He sought to acquire near-universal treatment and slow-rising health costs.

Republican opposition to the policy was still resilient. Several US states were still deliberating if they would sign up.

United States would provide Serco about 16% of its revenue. The company keeps a variety of contracts with the US Department of Health. This included overseeing its medical research center and American Indians' health services. 

By 6:21 in the morning ET, Serco's shares soared by 6.2%.

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