Payback time for auditors?

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AMA CEO James L. Madara
AMA CEO James L. Madara

Recovery Audit Contractors that make incorrect accusations should be penalized, an influential physicians group is urging.

Long-term care operators and other providers also have long criticized the Recovery Audit Contractor system, which rewards investigators based on the volume of “improper payments” they point out.

American Medical Association CEO James L. Madara decried RACs' “bounty hunter-like tactics” and claimed in a mid-December letter to Centers for Medicare & Medicaid Services Administrator Marilyn Tavenner that there are not enough disincentives for auditors who make false accusations without merit.

RACs need to be pressured to improve, Madara said.