Preparing for an RAC audit

Recovery audit contractors have the purview to audit every healthcare facility that submits Medicare claims, McKnight's explains. Once an RAC demand letter is received, facilities have 30 days to make payments before interest begins to accrue.

Following such a tight schedule can be difficult, but creating an RAC-ready environment before letters arrive or audits are even conducted can significantly expedite compliance. McKnight's recommends several steps to help prepare facilities.

These include designating an RAC coordinator to serve as a liaison between auditors and the facility, appointing a committee that represents departments affected by audits, conducting internal recovery audits to identify problem areas before RACs have the chance, and requiring staff to undergo billing and coding training.

Another suggestion is proactively contacting the RAC overseeing the region in which the facility is located. According to the Centers for Medicare & Medicaid Services website, Diversified Collection Services is responsible for Region A while CGI, Connolly and HealthDataInsights are in charge of regions B, C, and D, respectively.  

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