CSC will provide technology services to L.A. Care Health Plan.

EL SEGUNDO, Calif.--(BUSINESS WIRE)--July 30, 1996--Computer Sciences Corp. (NYSE:CSC) has been awarded an outsourcing contract to provide information-technology services to L.A. Care Health Plan, formerly the Local Initiative Health Authority for Los Angeles County, Calif.

The contract includes three base years and two one-year renewal options, and has an estimated value of $11 million over the base period.

Under the agreement, CSC's Healthcare Systems Division will coordinate the collection and distribution of eligibility, encounter, provider and other mission-critical data and will be a part of L.A. Care's on-site information systems and data-center resources.

``Effective information systems are critical to our success as a health plan, which makes CSC a key business partner in our effort to serve our members,'' said Anthony D. Rodgers, L.A. Care's chief executive officer. ``They are good information-technology people, we are a good health plan, and that makes for a strong partnership.''

L.A. Care is a health plan established to serve approximately 700,000 of Los Angeles County's Medi-Cal beneficiaries as part of the state's plan to shift most Medi-Cal recipients into managed-care health plans. The anticipated enrollment will make L.A. Care the state's fifth-largest HMO.

``We're pleased to support L.A. Care in delivering cost- effective, quality health care to Los Angeles County,'' said Van B. Honeycutt, CSC's president and chief executive officer. ``As government-sponsored health-care programs shift to managed care, L.A. Care's innovative solution serves as a model for the nation.''

The state previously provided fee-for-service health care for Medi-Cal recipients. This new program is a public/private partnership in which commercial health plans provide recipients with managed health-care service through an HMO.

With some 1.8 million Medi-Cal beneficiaries, Los Angeles County contains roughly half of California's total Medi-Cal enrollment. To serve that large and diverse population, L.A. Care has contracted with five commercial HMOs to provide health care. L.A. Care will provide program and quality-assurance oversight.

L.A. Care Health Plan was established by the Los Angeles County Board of Supervisors through enabling legislation from the state Legislature. Its 13-member board of governors includes representatives from the private and public health-care community as well as a Medi-Cal consumer and a consumer health advocate.

CSC Healthcare Systems markets information systems, consulting and outsourcing services to support managed-care organizations and integrated delivery systems.

Computer Sciences Corp. had $4.4 billion in revenues for the 12 months ended June 30, 1996. The company has headquarters in El Segundo and has 35,000 employees in 600 offices worldwide providing clients with a wide range of professional services, including management consulting, business re-engineering, outsourcing and information-systems consulting and integration.

CONTACT: Computer Sciences Corp.

Bruce Plowman or Spencer Davis, 310/615-0311

Mel Van Howe, 810/553-0900