First Consulting Group signs pact with Stellaris Health Network

First Consulting Group (FCG) and Stellaris Health Network, of Armonk, N.Y., have inked an estimated $40 million information services technology outsourcing agreement.

 The contract includes a $4 million implementation project with software vendor Meditech, of Westwood, Mass.

 The project to replace current systems and upgrade information technology will take place at:
  •  Lawrence Hospital Center in Bronxville, N.Y.;
  •  Northern Westchester Hospital, of Mount Kisco, N.Y.;
  •  Phelps Memorial Hospital Center in Sleepy Hollow, N.Y.; and
  •  White Plains (N.Y.) Hospital Center.
 The pact also includes a seven-year, $37 million operations contract, which went into effect on Oct. 1. First Consulting will manage all aspects of Stellaris' IT needs, including applications, desktop support, data administration, network support, disaster recovery and business continuity.

 FCG also may provide interest-free financing of as much as $4.1 million to one hospital and reimbursement of interest costs for a third-party line of credit for three other hospitals. The guarantees will take effect if FCG's system implementation results in an increase in a hospital's accounts receivable average balance or days outstanding during a 120-day period following completion of implementation.

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