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ADVANCE Perspective: HIM

RAC Ready?

Published November 6, 2007 11:07 AM by Lisa Algeo

Are you ready for the Centers for Medicare and Medicaid Services (CMS) Recovery Audit Contractor (RAC) program? If not, it’s time to get a move on. It seems that CMS may be accelerating its plans to expand this project to all 50 states. It has recently conducted a demonstration RAC project in the states of California, Florida and New York.

On Oct. 19, CMS put out a contingency fee based request for proposal (RFP) for recovery audit contractors. It states that March 2008 is the earliest date that providers can expect inpatient and outpatient hospital coding reviews in all 50 states. Although the rollout timeframe for RAC review has not yet been determined, now is the time to start preparing.

Our Nov. 5 Hands-on Help column discusses RACs and speaks with Starla Stavely, MM, RHIA, who has first-hand experience as a former HIM director in Florida. She offers some insight to the program and suggestions on how HIM professionals can get ready.

I’d love to hear from other HIM directors who’ve had experience with RACs. If you’re from California, Florida or New York and you have some words of wisdom to share with your fellow colleagues, please comment here. Your advice could be the key to getting other HIM directors motivated so they will be RAC ready too.

3 comments

We are currently going through the process of getting ready for RAC , who will be coming to Georgia next year - 09.  As we are hearing all the horror stories,  is there anything we can do now to prepare.  We are auditing charts, but it looks like the RAC has authority to deny claims with no justification at all.  We are a critical access hospital and if anyone has any experience with RAC in a critical access hospital ,  I would appreciate any advise you have to share.

Joy Kicklighter, HIM - Director, Bacon County Hospital June 23, 2008 10:38 AM
Alma GA

We have been through a 20 claim review in Florida for 2 practioners. We had a remarkable 80% error rate based on the reviewers findings. We were amazed at the lengths this reviewer went to find fault. For multiple claims they denied payment because the reviewer did not feel the PLOF was up to her standards.

Against the LCD she openly admitted to not reviewing the whole chart stating that "If you did not meet the PLOF requirement I don't need to go any further" It has been one error from First coast after another for 1.5 years. They have done everything in their power to drop the ball.

Most recently, after our initial denials we sent a rebuttal letter as part of the process to start an appeal. The redetermination detpartment considered, in error, that to be our appeal. It was clearly written by our attorney that it was not the appeal but the rebuttal. They denied the appeal. After weeks of phone calls, they agreed that an error was made and the case would be "reopened". The actual appeal was sent with all the documentation including scientific basis for our claims, outcomes and proper utilization of the services. They recieved that package with in the time frame they set with documentation of tracking numbers and signature of receipt from the carrier.  8 months later, which is out of compliane with CMS time frame for First coast to respond by 6 months, we spoke with a representative to inquire when we would finally have an answer for our appeal, "It was filed and never considered." "it was deemed redundant to the original appeal(rebuttal letter). After further turmoil we were told the case was reopened, "we are so sorry this happened"

1 week ago we recieved a letter that the appeal was not favorable because it was recieved late with the date they claim they recieved it as the 8 month phone call. Absolutely amazing.

They have lost patient documentation, delayed our process of appeals, dismissed protocols set by CMS, and there is no one who honestly oversees their(Firstcoast) behavior.

We are actively looking for other individuals in Florida who have had similar results and complaints. We are pursuing the course of Florida legislative intervention. We would like to hear from anyone who would like to attest to the mishandling of reviews, claims, denials, appeals and any other inappropriate errors from First coast service options.

Please email me at physicaltherapy33@gmail.com

We are very eager to have this matter addressed by Florida senators and immediate action is needed.

Florida PT April 8, 2008 6:31 PM

If I remember correclty, the people performing these audits are paid a commission based on the errors they find. I think that is a problem. Who is there to double check these auditors?

jazmen , billing December 4, 2007 12:16 PM
ft walton bch

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