Bloomerg BNA: Do RACs Really Add to Hospital Burdens?

An answer to that question was included in the recent RACTrac survey from the American Hospital Association, which said said that 48 percent of hospitals reported spending over $25,000 to manage their RAC process during the first quarter of 2014, while 11 percent reported spending over $100,000.

RACs have been operating nationally for several years now, but a question that’s often asked is whether they’re merely adding to the administrative burden facing hospitals rather than accomplishing their original mission by identifying and recovering overpayments. An answer to that question was included in the recent RACTrac survey from the American Hospital Association, which said said that 48 percent of hospitals reported spending over $25,000 to manage their RAC process during the first quarter of 2014, while 11 percent reported spending over $100,000. Fifty-one percent of hospitals participating in the survey said they used a RAC claim management tool during the first quarter of 2014, while 50 percent said they used a utilization management consultant. On average, hospitals spent $9,000 on the claim management tool and $45,000 on the management consultant, the survey said.

Hospital spending on RAC management processes was potentially the result of an increase in RAC medical record requests, which were up almost 9 percent from the fourth quarter of 2013 through the first quarter of 2014. Hospitals also reported receiving 100,136 automated RAC denials through the first quarter of 2014, a 9.5 percent increase from the previous quarter, and 513,587 complex RAC denials, a 13 percent increase.

http://www.bna.com/racs-really-add-b17179890949/