Permanent RAC program roll-out resumes

CMS announced on Feb. 4, 2009, that all parties involved in the protest of the award of the Recovery Audit Contractor (RAC) contracts settled their protests. The settlement means that the stop work order has been lifted and CMS will now continue with the implementation of the RAC program.

Under the program, the four RACs will contract with two subcontractors to supplement their efforts. PRG-Schultz, Inc. will serve as a subcontractor to HealthDataInsights, Inc. of Las Vegas, Nevada, (HDI), Diversified Collection Services, Inc. of Livermore, California (DCS) and CGI Technologies and Solutions, Inc. of Fairfax, Virginia, (CGI) in regions A, B and D. Viant Payment Systems, Inc. will serve as a subcontractor to Connolly Consulting in region C. Each subcontractor has negotiated different responsibilities in each region, including some claim review. PRG-Schultz and Viant had protested CMS' original awarding of the RAC contracts, leading to the delay in the roll-out of the permanent RAC program.

The RAC in each jurisdiction is: Region A: DCS; Region B: CGI; Region C: Connolly Consulting, Inc.; Region D: HealthDataInsights, Inc.