How RAC Will Impact Your Bottom Line
With the success of the RAC demonstration in recouping nearly $1 billion in improperly paid Medicare Funds, Congress, via Health and Human Services (HHS), plans to permanently implement RAC by January 1, 2010.
Why You Should Be Concerned About RAC?
- Revenue
- Strict Timelines
- Resources to manage the RAC audit process
RAC Impact Case Study
During the RAC demonstration period, the magnitude of RAC immediately hit the radar of many health care executives. For health care facilities that were fortunate enough to avoid taking part in the demonstration, we’ve attached a case study depicting the actual RAC costs incurred by a non-profit California health system. The reported costs are from their main hospital alone and do not reflect other satellite locations. But before you dive in, consider the following:
How many regional acute health care facilities do you operate?
How many clinics, hospice centers, home health care or DME locations?
To calculate the actual potential cost of RAC to your bottom line, multiply the case study operating expense by the number of total facilities you operate. Then ask yourself, are you really ready for RAC?