The American Hospital Association and four individual hospital systems filed a law suit against the Department of Health and Human Services (HHS) over practices employed by recovery audit contractors (RACs) on Thursday. The complaint, filed in the District Court for the District of Columbia, claims the federal government failed to reimburse hospitals for “reasonable and necessary (inpatient) care” when RACs believe that the care could have been provided at an outpatient facility. The complaint claims that this failure to pay violates Medicare law and regulation.
For more information on RACs and the lawsuit, click here.
