The American Hospital Association has released an advisory to members on Medicares Recovery Audit Contractor program discussing the contingency fee percentages that will be paid to each contractor.
The audit program allows third-party auditors hired by the CMS to keep a percentage of payments they identify as improper and then collect from providers. According to the document, the following fee percentages will be paid to the four permanent RAC contractors: Diversified Collection Services, Livermore, Calif., 12.45%; the Fairfax, Va., office of CGI Technologies and Solutions, 12.5%; Connolly Consulting Associates, Wilton, Conn., 9%; and HealthDataInsights, Las Vegas, 9.49%.
The document also addressed the roles that PRG-Schultz International, Atlanta, and Viant Health Payment Solutions, Naperville, Ill., will have as subcontractors to the program. Both were involved in a protest of the award of the RAC contracts last fall, which temporarily delayed the RAC programs implementation. Each subcontractor will work directly with the primary RAC in its designated region, according to the advisory, which is essentially a tutorial on the program. CMS has no formal contracting arrangements with the subcontractors, according to the advisory.