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| RAC AUDIT FACTS |
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The Tax Relief and Health Care Act of 2006 mandates the nationwide expansion of RAC audits to all states by 2010. These audits are intended to identify, and recover, incorrect payments by the Medicare Program.
- During the three year demonstration project in three states (NY, FL, CA), most overpayments (approximately 88%) were collected from Inpatient Hospital Services. Outpatient Hospital Services was the second largest area identified with overpayments (approximately 6%). Additional overpayments were also collected from categories such as, Physicians, Laboratory, and other suppliers.

SOURCE: RAC Data Warehouse, CMS presentation at State Issues Forum on 1/24/08
- Incorrect Coding was found to be the largest single category (42%) responsible for the improper payments. SOURCE: Self-reported by RAC's
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MAJOR OBJECTIVES OF A PRC RAC REVIEW
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PRC's RAC Review has been designed to identify potential areas of concern and recommend corrections (if necessary) to a hospital's Medicare reimbursement. The review encompasses various areas which are focused on by RAC Audits.
While conducting the Review, we will evaluate the level of compliance, and if conducted on-site we will provide educational session(s) for your staff and/or physicians; CE credits may be awarded by their professional organizations for attending. A resolution session will be held at the end of the project, where all of our findings, errors, and discrepancies will be discussed, and our initial recommendations will be made. A comprehensive, written report will be submitted in a timely manner. |
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KEY ELEMENTS OF A OUR RAC REVIEW
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Protest Resolved: On February 4, 2009 the parties involved in the protest of the award of the Recovery Audit Contractor (RAC) contracts settled the protests.
The settlement means that the stop work order has been lifted and CMS will now continue with the implementation of the RAC program.
Under the program, the four RACs will contract with subcontractors to supplement their efforts. PRG-Schultz, Inc. will serve as a subcontractor to HDI, DCS and CGI in regions A, B and D. Viant Payment Systems, Inc. will serve as a subcontractor to Connolly Consulting in region C. Each subcontractor has negotiated different responsibilities in each region, including some claim review.
The RAC in each jurisdiction is as follows:
Region A: Diversified Collection Services, Inc. of Livermore, California
Region B: CGI Technologies and Solutions, Inc. of Fairfax, Virginia
Region C: Connolly Consulting Associates, Inc. of Wilton, Connecticut
Region D: HealthDataInsights, Inc. of Las Vegas, Nevada
Future Jurisdictions:

CMS announced the national RACs and rollout plan as:
Diversified Collection Services, Inc. of Livermore, California, in Region A, initially working in Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and New York.
CGI Technologies and Solutions, Inc. of Fairfax, Virginia, in Region B, initially working in Michigan, Indiana and Minnesota.
Connolly Consulting Associates, Inc. of Wilton, Connecticut, in Region C, initially working in South Carolina, Florida, Colorado and New Mexico.
HealthDataInsights, Inc. of Las Vegas, Nevada, in Region D, initially working in Montana, Wyoming, North Dakota, South Dakota, Utah and Arizona. |
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