Health Information Management

News: RAC delay likely temporary

CDI Strategies, November 13, 2008

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CMS has delayed the Medicare Recovery Audit Contractor (RAC) permanent program and put a moratorium on all RAC-related informational sessions across the country. CMS has yet to release further details but told the American Hospital Association the action was necessary due to "a RAC protest and a stay of performance."

However, the California Hospital Association (CHA), in a memorandum obtained by HCPro., Inc, says that 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.

Despite the delay in the process, Joseph Zebrowitz, MD, executive vice president of Executive Health Resources in Newtown Square, PA, warns facilities not to change anything in terms of preparing for a RAC visit. The permanent program will not change, he says.

"Basically, this is infighting amongst CMS potential contractors who are upset that they were not awarded the RAC contract," Zebrowitz says.

To learn all the latest information regarding RACs, sign up for the HCPro Inc., newsletter The RAC Report.

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