Hospitals Sue Government Over Private Medicare Audits

A coalition of hospitals sued the U.S. government on Thursday, claiming that private auditors hired to crack down on improper Medicare payments are denying hospitals hundreds of millions of dollars in legal payments for necessary care.
November 2, 2012

A coalition of hospitals sued the U.S. government on Thursday, claiming that private auditors hired to crack down on improper Medicare payments are denying hospitals hundreds of millions of dollars in legal payments for necessary care.

The lawsuit alleges auditors known as Recovery Audit Contractors (RAC) forced hospitals to repay Medicare for the cost of in-patient services by determining months and sometimes years after the fact that beneficiaries should have been treated as out-patients instead of being admitted.

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