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Xerox To Book $385 Million Charge Over Gov't Healthcare Projects

(AP & WXXI News) Xerox will book a pre-tax charge of around $385 million, after the company announced Tuesday it will not complete the implementation of new Medicaid payment systems for Montana and California.

The company says it will still process Medicaid claims in those states using existing systems to avoid interrupting any services. Xerox had experienced delays implementing its platform in both Montana and California.

Xerox said Tuesday that it remains committed to implementing its Health Enterprise platform for other states.

Xerox reports earnings on October 26th, and it now expects a third-quarter GAAP loss from continuing operations of 3 to 5 cents per share. But excluding that charge, earnings are anticipated to be in line with the company's guidance of 22 to 24 cents per share.

Randy Gorbman is WXXI's director of news and public affairs. Randy manages the day-to-day operations of WXXI News on radio, television, and online.