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RAC Program Concerns Raised by the American Hospital Association (AHA)

The American Hospital Association (AHA) expressed its concerns with numerous regulations adversely impacting hospitals, by way of letter dated January 14, 2010 to Darrell Issa, the Chairman of the Committee on Oversight and Government Reform in the U.S. House of Representatives. Among numerous other regulations causing strife for hospital providers (e.g., the Federal Stark law, the Anti-Kickback law, the Civil Money Penalty law, etc.), the AHA noted its continuing concerns with the RAC program. The primary concern noted by the AHA involved the administrative burdens imposed upon hospitals directly related to the RAC program. According to the AHA, more than 50 percent of hospitals reported a significant increase in administrative burden, specifically in employing additional compliance staff and consultants to prepare for and respond to the RACs. The AHA also noted that multiple CMS contractors already are involved in the effort to identify inappropriate Medicare payments in addition to the RACs.

For more information on the RAC program, please visit the RAC page of The HLP website, or contact Abby Pendleton, Esq. or Jessica L. Gustafson, Esq. at (248) 996-8510.

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