How to Build RAC-Proof Admission Screening Criteria

Medicare’s Recovery Auditors (RACs) focus primarily on high-dollar, “wrong setting” denials for inpatient services, but many hospitals overlook this area when preparing for RAC audits.

Advertisement

A recent whitepaper from Craneware (pdf) said that although Medicare does not require hospitals to use published screening criteria for inpatients, a hospital’s utilization management committee should address admission leveling criteria to meet Medicare regulations and, potentially, avoid RACs. Karen Bowden, author of the whitepaper, listed three main recommendations:

1. Adopt all procedures on published “inpatient-only” lists from Medicare, any other payor with a published inpatient-only list and inpatient lists published in proprietary screening criteria.

2. Develop hospital-specific leveling criteria to address the “gray areas” where some procedures are billed as inpatient and other times as outpatient.

3. Establish a well-defined, second-level review process by a case manager who reviews specific types of cases and ensures there are consistent leveling practices. This can provide hospitals with defensible practices that meet Medicare regulations.

More Articles on RACs:

Medicare RACs Can Now Request Twice as Many Claims

AHA: More Than 70% of Hospitals Successfully Appeal RAC Denials

How to Bill for Renal and Urinary Tract Disorders and Avoid RACs

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.