RAC activities suspended because of protests

The Government Accountability Office just informed the CMS that because of the protests of two contractors, who were unsuccessful in becoming a part of the Recovery Audit Contractor program, RAC activities have been suspended. Viant of Naperville, IL, and PRG-Schultz International of Atlanta each filed protests with the GAO after awards were given to contractors in the permanent RAC program. Because of the Competition in Contracting Act of 1984, activities for the four contracts must be put on hold until an outcome is determined in regards to the protests. PRG officials could not be reached for comment, while a spokesperson for Viant merely reiterated that the company's bid for the RAC program was not successful.

CMS spokesman Peter Ashkenaz expects a ruling to be made shortly. "GAO has 100 days to issue a decision," he said.

To learn more:
- read this Modern Healthcare piece