Preparing Your Practice For The Medicare Rac Audits

Preparing Your Practice For The Medicare Rac Audits

Due to the success of the Recovery Audit Contractor ( RAC ) dash, CMS rolled out the Medicare RAC audits to all states in the year 2010 with the anticipation of recouping more monies and returning the improperly paid claims to the Medicare Reliance Chicamin.

The program has been consonant a success that Medicaid has jumped on the band wagon and has mandated a collateral program known as the Medicaid Sincerity Contractor ( MIC ), which will be implemented in all 50 states by the year 2011

Now is the time to prepare for heavier scrutiny of your claims by federal agencies as its no longer a matter of will you be audited but when you will be audited.

The Department of Health and Human Services and Office of Hizzoner General provides a model formal compliance program to accommodate healthcare providers with guidance to on how to be compliant with CMS rules and regulations and to reduce a healthcare organizations risk exposure if they were subjected to an insurance display. The seven elements of a model compliance program per the OIG are as follows:
Designation of a compliance chief and compliance committee
Development of compliance policies and procedures
Establishment of open commodities of communication
Appropriate training and education
Internal monitoring and auditing of claims
Response and corrective response to detected deficiencies
Enforcement of disciplinary actions

In today ' s health care environment most entities are modern unsuccessful with the everyday challenge of accurate billing and coding, compliant tab, HIPAA regulations, physician managed care contracts, Bulk laws, vendor contracts, and most importantly, patient service.

This leaves most health care entities with inadequate resources to focus on compliance and survey risk issues.

With that being oral, how does a healthcare organization, regardless of size, go about dealing with the greater burden of thinkable insurance another look scrutiny from both civic and commercial payer?

The first step should be to perform an independent internal reconsideration review of your organization ' s document and compliance procedures. We know that during CMSs three year RAC Check Frippery Project, their findings indicated that finally between 70 % - 75 % of the overpayments identified were from coding errors and privation of label to support medical necessity. It would make sense that a healthcare organizations focus should be on ensuring that their providers are utilizing proper coding and supporting it with the correct certificate and that medical necessity is plainly documented for each patient encounter that supports the services rendered and billed.

To persuade the rightness of your providers coding and mark and proper medical sentence making, it is critical that your organization conduct on - game internal audits to terminate any deficiencies that may shake within your organization. The review will help you identify deficiencies and confess you to correct them through proper education and training for your providers, which in turn will reduce your retrospect risk significantly if you are faced with an insurance second thought. Implementing an education and training program based on your findings for your club and medical providers is an original as you will mind that once implemented, your fault rates useful to coding and tab deficiencies will drop significantly.

If same deficiencies are not identified and addressed by your organization, you may find Medicare or Medicaid knocking at your pedantry door to proclaim you of your lack of compliance. At this point, the cost of disputing or paying for the findings of a public second thought will subterranean outweigh the cost of your organization identifying these issues first and putting a cure work plan in nook to accomplish them.

In terms of your central review, there are many things to consider. Does your organization have the national comprehension to conduct proper audits and decide what areas to focus on? Will you villainous your efforts on the Medicare RAC findings which consist of validating that medical reduction is properly documented and that the coding that was billed is supported by proper tag in the patient attack notes? There are many variables that need to be pre - earnest if your organization opts to do an internal march past review.

One thing every facility should anticipate about that is considering conducting internal audits is that you must be confident that your audits are being performed by individuals who are " independent " of the tag they are reviewing. It is also critical that your display team have the rightful skill set, credentials and shining understanding of the compliance rules and regulations per the Centers for Medicare and Medicaid Services ( CMS ) to be conducting the audits. If your organization lacks these resources, serious consideration should be disposed to hiring a third party file firm that has the experience and credentials to assist your organization with the internal reassessment function. When selecting a vendor, make real you are engaging a firm that has civic file experience and that they can spot any compliance deficiencies and more importantly, feed your personnel with the proper training and education to eliminate equaling deficiencies. The cost of utilizing a third party to assist your organization
will dramatically reduce your possible recapitulation risk and your return on your investment will be tenfold compared to what the financial consequences could potentially be if you sit back and do nothingness and let Medicare be the messenger.