Unisys: Nobody Said Diversifying Was Easy

Like a lot of old-line computer companies, Unisys Corp. is dead set on expanding its position in fast-growing computer-services businesses. In Unisys' case, a major thrust has been into providing computerized health-care services--claims processing and the like--for government employees. Lately, though, that initiative has run into trouble in three states, notably Florida, where authorities have started a criminal investigation of the company.

As recently as January, things looked a lot rosier. Unisys had won a key, $86 million contract to run Florida's state employee health-insurance business, which took effect on Jan. 1. For Unisys, the contract represented a big opportunity. It has long been in the medical-claims processing business. But in the Florida pact, it was doing more: For the first time, it was responsible for organizing the network of doctors and hospitals and processing claims. Succeeding might help it win other contracts, as states increasingly move to managed care for their employees.