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RAC Protest Resolved: CMS to Continue RAC Program Implementation

Andrea Kraynak, CPC-A, February 9, 2009

CMS announced February 6 the permanent RAC program is once again underway as the RAC bid protests filed by Viant, Inc., and PRG Schultz, USA, Inc. have been withdrawn. Viant and PRG’s protests were resolved February 4, which means the stop work order has been lifted, according to CMS.

The Government Accountability Office (GAO) had 100 days to issue a decision after the unsuccessful bidders filed their protests November 4, 2008. The GAO had been set to render a decision on the protests on February 9 for Viant, and February 11, for PRG Shultz.

The RACs by jurisdiction are as follows:

  • Region A: Diversified Collection Services
  • Region B: CGI Technologies and Solutions
  • Region C: Connolly Consulting, Inc.
  • Region D: HealthDataInsights, Inc.

"If you have put your RAC preparation on hold, it's time to start finalizing your strategy. And it's time to become familiar with the contractor in your area," according to Kimberly Anderwood Hoy, JD, CPC, is the director of Medicare and compliance for HCPro, Inc.

As a result of the protest settlements, these RACs will be subcontracting with PRG-Schultz and Viant. (PRG-Schultz will work with Diversified Collection Services in Region A, CGI in region B, and HealthDataInsights in Region D. Viant Payment Systems will work with Connolly Consulting in Region C.) PRG-Schultz and Viant will have different responsibilities—including possible claim review—in the various regions.

Editor’s note: To view this information on the GAO Web site, visit www.gao.gov/decision/docket and enter file #400443. For additional details from CMS, visit their Web site at www.cms.hhs.gov/RAC.


This story first appeared as a breaking news item from the editors of The Revenue Cycle Institute, a division of HCPro, Inc. The Revenue Cycle Institute is a multidimensional resource for healthcare professionals offering consulting and on-site education for a range of revenue cycle issues.

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