Serco confirms new £810m US health contract

Suzie Neuwirth
SERVICES company Serco yesterday confirmed that it has been awarded a new contract by the US Department of Health, worth $1.25bn (£810m).

The FTSE 100-listed firm will handle applications for a number of insurance affordability programmes including Medicaid services.

The contract has a one-year base period valued at around $115m with four further one-year options, equating to a potential value of $1.25bn. Serco will manage around 1,500 staff in the US who will work on the new contract.

“We are making excellent progress in our strategy to further broaden the portfolio,” said chief executive Christopher Hyman.

Serco shares closed 0.4 per cent higher at 638p.