What happened to NationsBank Corp.?
The Charlotte, N.C.-based superregional had been considered a leading contender for the just-awarded Southern Alliance of States electronic benefits contract. (See related story starting on page 1.)
Though the bank never confirmed that it had bid for the lucrative eight- state contract, insiders said it had. In fact, early in the bidding process, some predicted NationsBank would win.
The reason was pretty straightforward: NationsBank's target geographic area pretty much overlapped with the Southern Alliance, which comprises Alabama, Arkansas, Florida, Georgia, Kentucky, Missouri, North Carolina, and Tennessee.
So what went wrong?
NationsBank won't say, but consultants suggest it may be because of the bank's alliance with Electronic Data Systems Corp.
The Plano, Tex.-based processor is currently embroiled in a messy legal battle with the state of Florida. Consultants say Florida officials may well have blocked any bid that included EDS. An EDS spokesman dismissed that speculation as "someone's competitive agenda" and pointed out that an arbitrator has made a decision in EDS's favor.
EDS, like NationsBank, declined to say whether the two companies had indeed put in a joint bid for the Southern Alliance contract.
The two companies said they planned to combine resources to deliver government benefits and that they would pursue contracts nationwide.
NationsBank, which does not have any electronic benefits transfer business, teamed up with EDS to parlay its expertise and experience working with California's Medi-Cal program as well as 28 other state Medicaid systems.
