Be prepared for RACs with internal audits

Recovery audit contractors (RAC) arrive in 2010, so hospitals need to start preparing. Start by internally auditing two of the most common mistakes RAC auditors found during the demonstration project: incorrectly coded claims and claims for medically unnecessary procedures.

Internal audits define “a very important part of the RAC preparation process,” says Michael Taylor, MD, senior medical director of governmental retrospective appeals at Executive Health Resources in Newtown Square, PA. An internal audit “allows the facility to identify a potential problem area,” Taylor says.