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State Overcharged For Medical Equipment

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If the Department of Health Services had shopped around to find the best prices for Medi-Cal medical equipment and supplies, it could have saved the state millions of dollars, that according to an audit released today.

The news comes just days after Gov. Gray Davis proposed cutting Medi-Cal services, including some of the benefits cited in the audit.

The California State Auditor found that the department failed to make sure it wasn´t being overcharged for medical equipment and supplies.

The department is supposed to survey the market for such products every 60 days and set maximum price caps based on the lowest prices.

But the audit found that the department hasn´t updated some prices for more than 15 years.