Medicaid contractor sues Jindal administration

(Source: MGN Online)
(Source: MGN Online)

Associated Press

BATON ROUGE, La. (AP) - A Maryland-based company whose nearly $200 million Medicaid contract was canceled amid an ongoing federal investigation has sued Gov. Bobby Jindal's administration for terminating the deal.

Client Network Services Inc., known as CNSI, filed the lawsuit Monday in state district court in Baton Rouge.

The company says the contract with the Department of Health and Hospitals was improperly canceled. CNSI is seeking compensation for all work done, reimbursement for its costs and unspecified financial damages for harm to its reputation.

The Jindal administration scrapped the 10-year contract on March 21.

Jindal's health secretary Bruce Greenstein, who once worked for CNSI, resigned after the contract was terminated.

He has denied involvement in the contract award, but the Jindal administration has accused him of inappropriate contact with CNSI throughout the bid process.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.