Press Releases.

July 6, 2009

Healthcare Providers Face an Impending RAC Attack; ImageSoft’s AccuRAC Offers a Solution

SOUTHFIELD, Mich. — Amid the one-two punch of belt tightening, budget cuts and layoffs, healthcare institutions nationwide are about to feel the financial blow of the Medicare Recovery Audit Contractor (RAC). If they are unprepared, warns ImageSoft, Inc., of Southfield, Mich., the impact is likely to be a knockout.

With the dwindling Medicare Trust and an onslaught of aging baby boomers, Congress has authorized the Centers for Medicare and Medicaid Services (CMS) to resume its RAC program. The program aims to identify billions of dollars in erroneous Medicare overpayments to healthcare providers. Medicare is among the top three federal programs in terms of improper payments to providers. In 2007, erroneous payments totaled an estimated $10.8 billion, or 3.9 percent of claims received.

With RAC, which will be rolled out nationally by January 1, 2010, the government hopes to recoup those dollars. But the audits have the potential to cost already financially-pinched healthcare organizations millions of dollars. Beyond having to reimburse the government for overpayments unearthed by the audits, the cost to them to track and deliver the information needed to respond to audits can pose a strenuous financial burden. In response, ImageSoft has introduced AccuRAC to help healthcare organizations successfully manage the recovery audits and protect their financial assets.

“When a claim is called into question during an audit, the onus is on the healthcare provider to prove that the claim was not improperly reimbursed,” explained Scott Bade, ImageSoft president. “Accessing and assembling the documentation needed to do so is time-consuming and disruptive and can be an extremely costly process.” Missing a deadline or failing to respond results in an automatic ruling against the healthcare provider and forfeiture of the funds in questions. “The result can financially devastate an organization,” said Bade.

As an example, Bade cited a West Coast hospital which, during the RAC demonstration audits conducted from 2006-2008, was forced to reimburse the Medicare Trust for $11 million in overpayments. This year, RAC auditors expect to collect over $9 billion in overpayments to healthcare organizations.

ImageSoft launched AccuRAC to help healthcare providers keep dollars they have rightfully earned. A comprehensive, enterprise-wide solution, powered by OnBase from Hyland Software, AccuRAC automates the entire RAC response process. It combines business process management, records management and trending capabilities in a single application, and its workflow component assures an accurate, efficient and timely response to a RAC audit while effectively tracking claims activity.

Moreover, because it can be customized and is easily integrated with a facility’s existing systems, it allows healthcare providers to review in-patient records for compliance errors and eliminates the headache of impending audits. It has the added benefit of streamlining business processes beyond RAC.

“AccuRAC makes the audit process easy to manage, without adding additional staff,” said Bade. “It provides the information needed to successfully prevent overpayment determinations against healthcare organizations and minimizes the impact to their bottom line,” said Bade.

On July 23, ImageSoft will host a webinar about it AccuRAC solution 2 p.m. – 3 p.m. EST. To register for the webinar, contact Christopher Angi at

About ImageSoft Inc.

ImageSoft, Inc., develops tailored, innovative technology solutions to help its customers automate and streamline workplace processes, and thereby, increase productivity, reduce operating costs and save time and money. Its markets include health care organizations, the courts, government entities, insurance companies, educational institutions, and manufacturers. Founded in 1996, ImageSoft is based in Southfield, Mich., and today serves customers throughout the U.S., Canada and Mexico. An award winning company, since 2008 ImageSoft has been named one of Michigan’s Economic Bright Spots by Corp! Magazine. Additionally, in 2008 the company was selected as one of Inc. Magazine’s Fastest Growing Privately-Held Companies and was cited as a Michigan 50 Companies to Watch by the Edward Lowe Foundation. In 2008 and 2007, it was also named one of Metropolitan Detroit’s 101 Best and Brightest Companies to Work for. For more information visit