COLUMBIA, S.C. (AP)- State auditors say South Carolina has failed to properly manage a $52 million Medicaid transportation program that takes patients to medical appointments.

The Legislative Audit Council said the Department of Health and
Human Services had failed to "establish goals and performance
measures'' to justify the cost of the program and measure quality.

The State newspaper reported Thursday that the audit states that
in some instances, the agency failed to use competitive bids required in awarding contracts.

Lawmakers asked for a review after Gov. Mark Sanford told the agency to award contracts worth up to $235 million to two out-of-state companies, dropping local providers.

Health and Human Services spokesman Brian Cost says the agency
is fixing the problems the audit cited.

(Copyright 2009 by The Associated Press. All Rights Reserved.)