Recovery Audit Contractor (RAC) Program Takes Back Nearly $1 Billion

HealthPort, an industry leader in healthcare information services and technology, has launched a new solution to help hospitals prepare for Medicare’s expanding Recovery Audit Contractor (RAC) program.

Implemented by the Centers for Medicare and Medicaid Services (CMS) to identify and recover improper Medicare fee-for-service payments paid to healthcare providers, RACs have created a variety of compliance, cash flow, and administrative burdens for healthcare facilities. HealthPort RACPro is a unique, cost-efficient solution to help providers plan for, track, and deal with RAC audits. HealthPort has entered into a consulting partnership with Nancy Hirschl of Hirschl and Associates to develop the new product offering.

The new offering combines a web-based tracking and analysis application, preparedness consulting services and an automated medical record fulfillment process. HealthPort has designed this solution to be flexible and cost efficient. Hospitals can choose any combination of RAC products and services based upon their needs.

“The RAC pilot program has wreaked havoc for providers in California, Florida, and New York. When expanded to the remaining 47 states, it will certainly cause major disruption,” states Nancy Hirschl, President, Hirschl & Associates. Cash flow has been severely impacted and organizations have incurred significant costs responding to record requests and appealing denied claims. In some cases, thousands of patient medical records were being requested every month. The RAC corrected over $1 billion of Medicare improper payments from March of 2005 through 2008. Roughly 96 percent of the improper payments ($992.7 million) were overpayments collected from providers. HealthPort RACPro addresses these problems in an automated, organized, and efficient manner, allowing hospitals to streamline their workflow around the RAC process and potentially minimize financial loss.

“HealthPort is acutely aware of the burden placed on hospitals with the expansion of the RAC program, and we want to be proactive in helping our clients efficiently manage this process,” says Jonathan Arkin, Vice President of Business Operations for HealthPort. “Our solution handles the tracking of each type of RAC review, and our web-based technology provides an extremely efficient platform for processing associated requests of medical records needed for RAC assessment while also helping organizations strengthen their overall position through a more strategic and analytical approach. Our industry knowledge along with our technology expertise and consulting partnership give us a distinctive advantage in assisting a facility’s need for customizable RAC solutions,” Arkin concludes.

About HealthPort
HealthPort combines technology and strategic solutions to continually improve fragmented business processes for the healthcare community. The company offers revenue cycle management, electronic medical record, electronic document management, practice management, release-of-information, and healthcare consulting services. HealthPort is the one-source provider, offering the widest selection of affordable, quality health information products and services in the industry. For more information, visit www.healthport.com or call 800-737-2585.