HFMA to Release RAC Audit Accounting Analysis & Guidelines

(Advance Document Available)

WESTCHESTER, Ill.--(BUSINESS WIRE)-- The Healthcare Financial Management Association (HFMA) Principles and Practices Board has an issue analysis, Accounting for RAC Audit Adjustments and Exposures, which will be released to association members at HFMA’s 2010 ANI: The Healthcare Finance Conference, June 20-23rd. “The issue analysis clarifies certain accounting and reporting issues resulting from Recovery Audit Contractor (RAC) audits,” says HFMA’s Rick Gundling, Vice President, Healthcare Financial Practices. “These issues involve proper revenue recognition when confronted with a RAC audit adjustment.”

HFMA is the first organization to publish guidance on how to handle these accounting and financial report issues around RAC audits.

The issue analysis provides accounting guidelines for healthcare finance leaders who must respond to RAC audits and adjustments, including the following situations:

  • A healthcare entity receives a notification of RAC audit adjustments.
  • A healthcare entity suspects it may have billed for and/or been paid for services that are potentially non-reimbursable.
  • A healthcare entity is concerned about potential RAC adjustments for issues that have not yet been identified.
  • A healthcare entity receives notification of a RAC audit adjustment recovery.
  • The issue analysis also contains a helpful Q&A section that provides detailed answers to specific RAC accounting questions.

“We've heard from many of our members that RAC audit adjustments have been a particular pain point and that accounting practice needed to be applied consistently. Because of the potential for significant payment reductions, the P&P Board determined that it warranted specific guidance on revenue recognition” says Dick Clarke, President and CEO.

To request an advance copy of Accounting for RAC Audit Adjustments and Exposures or if you need additional information, please call the contact number listed above.

About HFMA

The Healthcare Financial Management Association (HFMA) provides the resources healthcare organizations need to achieve sound fiscal health in order to provide excellent patient care. With over 35,000 members, HFMA is the nation's leading membership organization of healthcare finance executives and leaders. We provide education, analysis, and guidance; we lead change and innovative thinking; and we create practical tools and solutions that help our members get results. Addressing capital access to improved patient care to technology advancement, HFMA is an indispensable resource on healthcare finance issues. www.hfma.org


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