Caring for the most vulnerable population

KPMG helped the State of Tennessee modernize its IT system for Medicaid.

State of Tennessee
Public health care services
Medicaid IT system modernization
  • Client challenge
  • Benefits to client
  • Approach
  • KPMG insights

Client challenge

The State of Tennessee's Division of TennCare (TennCare) was tasked with modernizing the state Medicaid IT system, a vital source of healthcare services for approximtely 1.5 million residents, as of January 2017, often considered the most vulnerable population of the state. 

Previous attempts at modernization had not been successful. Although systems integrators were engaged to support the deployment of a new software environment, the state also recognized the need for a long-term strategic technical advisor to coordinate, assess, and manage everyone's efforts along the transformation journey. 

Benefits to client

Working with the State of Tennessee is a KPMG team of specialists in public sector transformation projects, health care and Medicaid systems, large-scale IT implementations, and change management. We are providing a reference architecture for Health and Human Services and an IT operating model. 

At the time of this story's writing, halfway through the project, the KPMG team had established a business analyst function; developed a road map for projects in scope; delivered selection assistance and procurement support; launched an organizational change management inititative; supported training and testing programs; and provided quality assurance over the system integrator.


Over the years, KPMG has served the State of Tennessee's Division of TennCare as a trusted, strategic advisor. Subsequently, KPMG was directly engaged by the state to provide technical advisory and assessment services for modernizing its Medicaid eligibility system. 

The current project is very complex and involves the Medical Assistance Eligibility and Enrollment Systems, the Medicaid Management Information System and Appeals system, the Health Information Exchange, and components for anayltics and security. Our experienced, multidiciplinary team works closely with third-party systems integrators and stakeholders in the Division of TennCare and provides a number of services to help ensure the success of the project. 

KPMG insights

Work with industry specialists

Projects for the public sector can have unique requirements in terms of size, complexity, funding, security, and regulatory mandates. Specialists in state and local government understand the public sector and can speak its language, helping government entitities address their specific challenges.

Leverage previous efforts

For the Tennesseee project, KPMG leveraged portions of existing operating models and tested methodolgies developed for engagements in other states involving health care delivery systems. This helped ensure steady progress along the transformation journey from strategy to implementation. 

Build multidisciplinary teams

Today's large-scale projects need a flexible approach involving people, processes, and technology. Members with diverse skills can complement each other and optimize the team's overall efforts.

As long-time trusted advisor to this client, KPMG helped ensure steady progress along the transformation journey from strategy to implementation.


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