RAC is the magic bullet that CMS (Centers for Medicare and Medicaid Services) is using to describe the new federal Medicare Recovery Audit Contractor program that was officially started last week. RAC was started by the Medicare Modernization Act of 2003 to identify and correct improper payments. Third-party auditors get to keep a piece of the payments they identify and collect as inappropriate. Blog [1]
Links:
[1] http://www.hospitalimpact.org/index.php/scoop/2008/10/28/bounty_hunting_in_hospitals