Recovery Audit Contractor: Physician Issues

What are the RACs?

The Medicare Modernization Act of 2003 established the Medicare Recovery Audit Contractor (RAC) program covering healthcare entities such as hospitals and physician practices effective Jan. 1, 2010.  The RAC program is a cost containment effort aimed at reducing improper payments (overpayments and underpayments) made by Medicare, as well as identifying process improvements to reduce or eliminate future improper payments. While hospitals have been receiving RAC denials for some time, we are beginning to see an increase in physician specific issues posted by the RAC.