Minnesota probably overpaid a contractor to oversee the state's nonemergency transportation of patients in the Medical Assistance (Medicaid) program because of lax oversight, according to an audit released on Tuesday by Legislative Auditor James Nobles.

"Lack of consistent and reliable data has hampered oversight efforts," the audit concluded, calling on the Department of Human Services to improve transparency, enforce quality controls and gather better data about the program, which cost $38 million last year.

Auditors said that while about 265,000 people are eligible for the service, it could not say how many trips were provided or how many clients were served because many outstate counties bill the state for a lump sum without details, said Jo Vos, a legislative auditor program evaluator.

The audit noted that some costs have dropped since 2006, but it said the state may have overpaid the contractor that coordinates the system by $1.5 million in 2009 and concluded that it was impossible to say whether using the contractor saved money.

The nonemergency transportation system is split in two. Counties oversee rides given by volunteers, public transit and taxi-style service that usually is curb-to-curb, and then bill the state. The Department of Human Services is responsible for the "special transportation" system for people with physical or mental disabilities who require help from inside their home to inside their destination. The audit said that the system is "duplicative and confusing" and that the two should be combined.

Scott Leitz, the department's new assistant commissioner for health care administration, said his agency agreed with the findings and is implementing them.

To read the report, go to www.auditor. leg.state.mn.us Warren Wolfe • 612-269-4607