How To Be Proactive With RAC Audits

RAC audits, short for Recovery Audit Contractor audits, have become an integral part of the healthcare revenue cycle management (RCM) process. These audits are carried out by Medicare and Medicaid to ensure that healthcare providers are billing accurately and compliantly. Any errors in billing can result in denied claims, revenue loss, and even potential legal repercussions. Therefore, being proactive in dealing with RAC audits is crucial for the financial health of your healthcare organization.

In this blog, we’ll explore the RAC audit process, the importance of being proactive, and how RevKeep, an innovative RCM software solution, can help you simplify the audit process and improve your chances of success.

Understanding RAC Audits

What Are RAC Audits?

RAC audits are initiated by the Centers for Medicare & Medicaid Services (CMS) to identify and correct improper Medicare and Medicaid payments. These audits are conducted by private companies known as Recovery Audit Contractors, who review healthcare providers’ claims and medical records to determine whether they were billed correctly. The focus is on identifying overpayments and underpayments.

The RAC Audit Process

The RAC audit process typically involves the following steps:

1. Identification of Claims

RACs analyze healthcare providers’ claims data and identify potential claims for review.

2. Documentation Review

After identifying claims, RACs request and review the corresponding medical records to ensure that the services provided were medically necessary and billed accurately.

3. Claims Adjustment

If errors or discrepancies are found during the review, RACs may recommend claim adjustments, which can lead to overpayments being returned to the payer or underpayments being collected from the provider.

4. Appeals Process

Providers have the option to appeal RAC audit findings. This is an essential step in protecting your revenue and ensuring fair reimbursement.

The Importance of Being Proactive

Being proactive in your approach to RAC audits is vital for several reasons:

1. Cost-Efficiency

By proactively reviewing your own claims and medical records, you can identify and rectify potential billing errors before they catch the attention of RACs. This proactive approach can save you from the cost of overpayments and fines.

2. Mitigating Risk

Proactively monitoring your billing practices reduces the risk of being flagged for RAC audits. This not only saves your resources but also protects your organization’s reputation.

3. Timely Appeals

By staying ahead of the audit process, you can better prepare for appeals if necessary. This increases your chances of successfully challenging audit findings.

Compliance and Education

Proactive RAC audit readiness also promotes a culture of compliance within your organization. It encourages staff education and ensures that everyone is aware of the importance of accurate billing.

How RevKeep Simplifies RAC Audits

RevKeep is an innovative RCM software solution designed to simplify the RAC audit process and help RCM teams succeed in RAC and private payor audits.

Streamlined Audit Workflow

RevKeep streamlines the audit process by centralizing all audit-related data and documents. This makes it easy for your team to access and review information, ensuring that you are well-prepared for any audit.

Real-Time Data Analysis

RevKeep provides real-time data analysis and reporting capabilities, allowing you to proactively monitor your billing and coding practices. This enables you to identify and rectify potential issues before they trigger an audit.

Appeals Management

With RevKeep, you can efficiently manage the appeals process, ensuring that all necessary documentation is in place for a successful appeal. This is crucial in maximizing your chances of overturning unfavorable audit findings.

Compliance Tracking

RevKeep includes compliance tracking features that help you stay on top of regulatory changes and ensure that your organization remains in compliance with Medicare and Medicaid billing guidelines.


In today’s healthcare landscape, RAC audits are a reality that providers must face. Being proactive and prepared for these audits is not only beneficial for your bottom line but also for maintaining a positive reputation and ensuring compliance.

RevKeep is the solution you need to simplify the RAC audit process and enhance your chances of success. With its user-friendly interface, real-time data analysis, appeals management, and compliance tracking features, RevKeep empowers RCM teams to proactively manage audits and win more of them.

Don’t let RAC audits catch you off guard. Embrace a proactive approach and leverage RevKeep to take control of your audit processes. To learn more about how RevKeep can help your organization, visit RevKeep’s website today.

RevKeep – Simplifying RAC Audits

RevKeep helps RCM teams Win More RAC & Private Payor Audits. RevKeep helps RCM Teams streamline RAC & private payor audits and win more of them with an easy-to-use software solution.

Win More RAC & Private Payor Audits With RevKeep

RevKeep helps RCM Teams streamline RAC & private payor audits and win more of them with an easy-to-use software solution.

Looking for a way to simplify your revenue cycle management?