What is the status of the RAC Audits program?
PRG Schultz (nasdaq: PRGX) was one of the RACs for the demonstration project and they were not selected for the permanent program. PRGX’s stock dropped almost 65% overnight when they weren’t selected and they elected to challenge the RAC contract awards by the Government Accountability Office (GAO). Based upon that challenge, the GAO was required to automatically extend a 100 day stay in the RAC program and review the contract selection process through the first quarter of 2009. The GAO stay in no way impacted the retroactive nature of RAC audits and providers are on the hook for Medicare paid claims back to October 1, 2007. February 6, 2009 – Both PRG-Schultz and Viant dropped their bid protest and have settled with CMS on their RAC award disputes. As part of the settlement, both PRG-Schultz and Viant will sub-contract to the permanent RACs. This settlement clears the way for the nationwide rollout of the RAC audit program effective immediately.
