What is an important preparation step for providers undergoing a RAC audit?

Knowing previous improper payment findings is crucial for providers undergoing a Recovery Audit Contractor (RAC) audit because it helps them understand the specific areas where issues have been identified in the past. This knowledge allows providers to identify potential vulnerabilities in their documentation and coding practices, leading to better preparation and proactive measures to address those issues.

By reviewing previous findings, providers can focus on improving their compliance with coding guidelines and pay attention to areas that may have caused denials or payment recoupments in the past. This awareness helps them to tailor their audits or reviews to ensure that any potential infractions are corrected before audits occur, thereby minimizing the risk of improper payments in the current audit.

This preparation step directly aligns with the goals of a RAC audit, which seeks to identify improper payments and enhance overall compliance. Understanding past improper payment trends can significantly strengthen a provider’s ability to defend against current audit claims and improve their overall billing practices.