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N.C. Medicaid to Save $15 Million Annually on Incontinence Supplies

For release: Immediate    Mar. 3, 2011
Contact: Brad Deen, (919) 733-9190

RALEIGH — N.C. Medicaid anticipates saving $15 million per year on disposable briefs and similar products by streamlining the supply chain.

DHHS has selected Neil Medical Group of Kinston as the winning bidder to supply incontinence products for Medicaid recipients, beginning May 1. The contract is for one year, with two renewable one-year options.

DHHS Sec. Lanier Cansler said federal Medicaid authorities encourage bulk-purchase arrangements as a way to contain costs. “In the present budget climate, where cuts to services are under serious discussion, this represents an easy, painless way to save money,” Sec. Cansler said. “Medicaid recipients should experience no interruptions or other inconveniences. In fact, many will not even notice that anything has occurred.”

Nearly 30,000 N.C. Medicaid recipients ages 3 and older require disposable briefs, pads, liners and rubber gloves due to incontinence. DHHS relies on a network of providers—home health agencies, other in-home care providers or durable medical equipments vendors—to distribute incontinence products to the individual. The new contract retains that distribution network, with providers able to purchase the supplies from Neil Medical Group at a guaranteed rate.

Incontinence products cost N.C. Medicaid just over $27 million last year. Initial estimates place annual savings under the contract at $15 million.
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