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Appeals court invalidates CMS contract with RACs

from Fierce HealthFinance

It may be back to square one in the Centers for Medicare & Medicaid Services' bid to create new pacts with recovery audit contractors. The U.S. Court of Federal Appeals has invalidated the current proposed contract with RACs, primarily due to their violation of U.S. acquisition regulations. The violation is based on a provision in the contract that would not allow RACs to collect contingency fees for their work until a clawback that has been appealed by a hospital reaches the second of a five-stage appeals process. more

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