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Providers Report First RAC Denials in Florida, South Carolina

Andrea Kraynak, for HealthLeaders Media, November 12, 2009

Healthcare providers in several states received their first RAC denials.

Connolly Healthcare, the Region C RAC for Florida, South Carolina, and several other states, has been behind many of them.

One hospital in South Carolina reports having three claims denied. However, learning of those denials did not go smoothly. The hospital received a call in late October from Connolly regarding a denial letter the hospital said it didn't receive. The RAC sent the original denial letter in early August, and although it was addressed to the hospital, it reportedly had no specific contact person listed, and the hospital never received it, according to the hospital.

The hospital said it had provided Connolly with the name of the contact person for their facility months prior through the form Connolly provided on its Web site, according to a hospital employee.

"Connolly acknowledged that the absence of a contact person on the letter was their error and they are working to correct it," she said.

In the meantime, the RAC has faxed a copy of the denial letter to the hospital. The total take back was less than $200, but it has given the hospital a chance to test its RAC tracking system, which is reportedly working well thus far.

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