CMS Settles RAC Protest, Reinstates Program

Last week, the Centers for Medicare and Medicaid Services (CMS) announced that the parties involved in the protest over the award of Recovery Audit Contractor (RAC) contracts had come to a settlement. This means that the stop work order has been lifted, and CMS will continue with the implementation of the RAC program.

PRG-Shultz will serve as a subcontractor to HealthDataInsights, Diversified Collection Services, and CGI Technologies and Solutions. Viant Payment Systems will serve as a subcontractor to Connolly Consulting. According to CMS, “the four RACs will contract with subcontractors to supplement their efforts.”

The program had been suspended last November when PRG-Shulz and Viant protested the contracts that had been awarded to four others. CMS plans to have four RACs in place by 2010. Each RAC will be responsible for identifying overpayment and underpayments in approximately a quarter of the country.

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