According to a report issued by the Centers for Medicare & Medicaid (CMS) on the status of the Recovery Audit Contractors (RAC) demonstration program, hospitals provided more than 90% of the $357 million in Medicare overpayments collected by RACs in fiscal year 2007. According to the RACs, most overpayments were due to coding errors and medically unnecessary admissions. The report also confirms plans for the national RAC program to begin in this Spring, following the conclusion of the demonstration program.

For more on the program can be found by going to http://www.cms.hhs.gov/RAC/Downloads/2007 RAC Status Document vs1.pdf.