Morning Headlines 1/13/14

Obama administration to end contract with CGI Federal, company behind HealthCare.gov

CGI Federal, the Canadian contractor responsible for developing Healthcare.gov, will lose its contract for the job because of the failed rollout, and ineffective performance since. Accenture, who developed California’s insurance exchange, is expected to sign a one-year $90 million deal to take over responsibility for fixing the site.

NHS data move opt-out ‘damaging’

In England, the NHS is sending pamphlets to all households to educate the public on its care.data program after widespread public concerns over privacy resulted in an increase in opt-out requests. The care.data program connects NHS databases with private practice offices to help the government assess diseases, examine new drugs on the market, and identify infection outbreaks.

Quality Systems, Inc. Announces Expected Impairment in Its Hospital Solutions Division

QSII, parent company of NextGen, announces that it expects to record a loss on its Q3 financial reports once its Hospital Solutions Division completes a long-lived asset impairment analysis. The company could write down as much as $30 million depending on the results of the review.

IBM Set to Expand Watson’s Reach

In an effort to increase profitability of its Watson business unit, IBM announces that it will invest $1 billion in the project. The money will be used, in part, to expand its sales and marketing force, and to launch a $100 million VC fund aimed at kick starting Watson-based development efforts.