recovery audit contractors (RACs)

Recovery Audit Contractors (RACs) are organizations hired by the government to review healthcare claims and payments made to hospitals and other providers. Their goal is to identify overpayments, underpayments, or billing errors to ensure that the Medicare program pays accurately. RACs analyze medical records and claims data to find discrepancies, helping to recover any funds that were incorrectly paid. While they help protect taxpayer dollars, their audits can sometimes lead to disputes over claims, making it essential for healthcare providers to understand billing practices and compliance regulations.