RALEIGH, N.C. (AP) — Using outside companies to help detect Medicaid program fraud and abuse ultimately will reap significant savings for the state of North Carolina, despite a recent audit critical of contract terms and the initial yields, the state Medicaid director said Wednesday.

Mike Watson with the Division of Medical Assistance stood by the long-term efficacy of entering into agreements with firms such as IBM Corp. and SAS Institute while speaking to a government watchdog panel within the General Assembly hearing about the audit by State Auditor Beth Wood.