logo Print this page
Updated on: September 19, 2018

News Alert: Medicare Approves Recovery Audit Program for IRFs

Original story posted on: September 18, 2018

RAC issue for IRFs has moved from being proposed to being approved.

The Centers for Medicare & Medicaid Services (CMS) recently posted a potential Complex Medical Review for (inpatient rehabilitation facilities) IRFs. The issue: 0A024-Inpatient Rehabilitation Facility (IRF) Stays: Meeting Requirements in the proposed Recovery Audit Contractors (RAC) Topics list on the CMS website. On Sept. 11, 2018 that issue was moved to the Approved Topics list and IRFs can now expect to receive Additional Document Requests (ADRs) from the RAC.

Who is Affected?

The approved review will affect all regions and all states so ultimately every IRF will be open for review.

How Will We Know When Our Region Begins Audits?

The table below, copied from the CMS Website, lists the RAC Regions with links to each RACs website.





Phone Number

Region 1

Performant Recovery, Inc.

CT, IN, KY, MA, ME, MI, NH, NY, OH, RI, and VT





Region 2

Cotiviti, LLC

AR, CO,  IA, IL, KS, LA, MO, MN, MS, NE, NM, OK, TX, and WI




Region 3

Cotiviti LLC

AL, FL, GA, NC, SC, TN, VA, WV, Puerto Rico and U.S. Virgin Islands




Region 4

HMS Federal Solutions

AK, AZ, CA, DC, DE, HI, ID, MD, MT, ND, NJ, NV, OR, PA, SD, UT, WA, WY, Guam, American Samoa and Northern Marianas



Part A: 1-877-350-7992

Part B: 1-877-350-7993

As of Sept. 18, 2018, none of the RACs have yet posted details on these reviews on their website. We’ll be checking regularly, however, and will update readers when the RACs post information.

So, What Now?

The reviews would impact RAC Regions 1-4 in all states and will likely include a review of how well the IRF meets the Jan.1, 2010 clarifications for reasonable and necessary care in an IRF – the same areas that have been consistently reviewed by Medicare Administrative Contractors (MACs) in Probe & Educate reviews, by Special Medical Review Contractors (SMRC), and in the current Targeted Probe and Education program (TPE). IRFs should watch the websites and our updates for updates to the issues and details of these audits.

The Bottom Line

Clear, complete and timely documentation continues to be the IRFs best defense for ongoing audits. Additionally, a clear process for responding to document requests to assure that the required documentation is submitted in a timely manner will aid the IRF in successful audit performance.


Angela Phillips, PT

Angela M. Phillips, PT, is President and Chief Executive Officer of Images & Associates. A graduate of the University of Pennsylvania’s School of Allied Health Professions, she has more than 40 years of experience as a consultant, healthcare executive, hospital administrator, educator, and clinician. Ms. Phillips is one of the nation’s leading consultants assisting Inpatient Rehabilitation Facilities in operating effectively under the Medicare Prospective Payment System (PPS) and in addressing key issues related to compliance. Ms. Phillips is a member of the RACmonitor editorial board and a popular guest panelist on Monitor Mondays.

This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest from Angela Phillips, PT

Related Articles

Copyright © 2020 | ICD10monitor.com, a division of Panacea Healthcare Solutions, Inc.
287 East 6th Street | Suite 400 | St. Paul, MN | 55101 • TOLL FREE: 800.252.1578