A report said Kentucky's Department of Mental Health could have saved as much as $9 million if it had hired 468 contract nursing services employees directly instead of going through agencies.

The report by the Kentucky Auditor of Public Accounts said the state paid staffing firms $42 million during fiscal years 2007 and 2008 for nursing contracts used by the Kentucky Department of Mental Health.

The report also said the state lacked proper monitoring of the nursing contracts.

"Without proper oversight of this process, it's impossible to ensure that the state is using the most effective means to accomplish its goals to staff health facilities," said State Auditor Crit Luallen. "Even though hiring nursing staff can be difficult and may require outside help, the cabinet must contain costs whenever possible to protect tax dollars at all levels."

For the press release and report, click here.