Corporate Compliance

RAC permanent program on standby

Healthcare Auditing Weekly, November 11, 2008

CMS announced Nov. 3 it has delayed the Medicare Recovery Audit Contractor (RAC) permanent program and put a moratorium on all RAC-related informational sessions across the country.

CMS said on its Web site, "this action is the result of protests filed by two unsuccessful bidders for the RAC program with the Government Accountability Office (GAO)."

According to a California Hospital Association (CHA) memorandum, PRG Schultz (PRG), a contractor that submitted a bid for work in the permanent program but wasn’t selected as one of the four permanent contractors, was considering a challenge to the contract award process.

On Monday, CMS ordered a blanket shutdown of all RAC activity, including its informative sessions.

The halt comes just weeks after CMS announced the new RACs for its permanent nationwide program, as well as how much money RACs will make from provider overpayments.


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