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Telling the hospital story about RACs

March 21, 2014

As Medicare recovery audit contractor (RAC) audits continue to mount, the AHA’s RACTrac survey collects information from hospitals nationwide to expose the administrative burden, inappropriate payment denials and persistent audit process problems associated with the RAC program. These quarterly reports are a valuable tool to assist hospitals in taking steps to reduce their vulnerability to RAC payment denials.

RAC auditing activities are divided among four regions – Region A (Northeast), Region B (Midwest), Region C (South) and Region D (Plains and West). The tables below are from the latest RACTrac survey, which tracked RAC-related activity through the fourth quarter of 2013. In terms of cost, the survey found 68% of hospitals spent more than $10,000 managing the RAC process during the fourth quarter of 2013. Half reported spending more than $25,000 while a quarter of that number spent more than $100,000.

For more on the survey, visit
www.aha.org/ractrac. And listen to an audio podcast with Michael Ward, the AHA senior associate policy director who handles RAC issues. He discusses the RACTrac survey’s findings and why they illustrate the need for comprehensive RAC reforms. Listen in here.