CFO leaving RAC subcontractor

PRG-Schultz International, Atlanta, a subcontractor in the CMS’ Recovery Audit Contractor program, has announced that its treasurer and chief financial officer, Peter Limeri, will be resigning on May 31.

The company said in a written statement that Limeri was leaving “to pursue another opportunity.”

The controversial new audit program allows third-party auditors hired by the CMS to keep 9% to 12.5% of payments they identify as improper and then collect from providers. PRG-Schultz, which administered RAC audits for California during the program’s demonstration project, had a reputation for denying a large portion of the Medicare inpatient rehabilitation claims it reviewed in the state.

Recently, a lawsuit was filed by two-hospital Palomar Pomerado Health against HHS, alleging that PRG-Schultz unlawfully reopened a claim by Palomar (Print subscription required) during the RAC demonstration project without showing “good cause” for the reopening as required by Medicare regulations.

Robert Lee, PRG-Schultz’s controller, will succeed Limeri by appointment to the additional roles of CFO and treasurer.

Company officials could not be reached for comment by deadline.

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