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ASCs in the news: CMS names RAC contractors

Ambulatory Surgery Reimbursement Update, October 21, 2008

CMS announced the new Medicare Recovery Audit Contractors (RACs) for its permanent nationwide program Monday, October 6. According to the CMS news release, the four contractors and their initial selected regions are:

• Diversified Collection Services, Inc. of Livermore, CA: Region A, covering Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and New York
• CGI Technologies and Solutions, Inc. of Fairfax, VA: Region B, covering Michigan, Indiana and Minnesota
• Connolly Consulting Associates, Inc. of Wilton, CT: Region C, including South Carolina, Florida, Colorado and New Mexico
• HealthDataInsights (HDI), Inc. of Las Vegas, NV: Region D, including Montana, Wyoming, North Dakota, South Dakota, Utah and Arizona

In the news release, CMS states that it chose the contractors and their regions based on three factors:

• A “best value determination” that includes a strong technical approach and “exceptional” customer service
• Conflict of interest reviews
• Lowest contingency fee

CMS says that Connolly and HDI worked on the initial RAC demonstration project. That project spanned over six states, collected more than $900 million in overpayments, and returned nearly $38 million in underpayments to healthcare providers, according to the news release.

To read the CMS news release, click here.

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