Premier Healthcare Alliance Enhances RAC Capabilities to Help Hospitals Achieve Maximum Revenue Retention

Recent Acquisition of Phase 2 Consulting Complements Premier Consulting
Solutions` Existing RAC Preparation and Management Offerings
CHARLOTTE, N.C.--(Business Wire)--
Over a two-year period from 2006 to 2008, Medicare`s Recovery Audit Contractor
(RAC) demonstration program corrected more than $1.03 billion in improper
Medicare payments. During the demonstration, auditors recouped $992.7 million in
Medicare payments, or 96 percent of the improper payments; more than 85 percent
of those overpayments were collected from our nation`s hospitals. And 60 percent
of these payment recoveries occurred in 2008, suggesting a continued trend of
hospitals returning funds to Medicare once the permanent RAC program is fully
implemented by January 1, 2010.

To help hospitals properly prepare for a nationwide RAC program, the Premier
healthcare alliance has enhanced its RAC preparation and management solutions
that assist providers in achieving maximum revenue retention. In June, Premier
acquired Phase 2 Consulting (P2C), which offers expertise and consulting
capabilities around RAC readiness and charge capture, revenue cycle services,
strategic planning and service line analysis.

"From value-based purchasing to payment bundling to payment recovery audits,
pressure on healthcare providers to properly identify every opportunity to
receive reimbursement for services provided has never been greater," said Wes
Champion, senior vice president of Premier Consulting Solutions (PCS).
"Premier`s existing capabilities combine expertise in RAC preparation and
management with experience in clinical process and revenue cycle management,
along with the collaborative knowledge sharing among our more than 2,100
alliance member hospitals."

"The RAC program represents an immediate opportunity for organizations to ensure
they are receiving appropriate reimbursement while minimizing the risk of both
past and future payment recoveries," said Susan DeVore, Premier president and
CEO. "Premier`s offerings in this area will help our alliance members transition
smoothly into the permanent RAC program."

Steps that hospitals should take to ensure the highest level of admission and
claims accuracy and minimize the risk of past and future RAC audit payment
recoveries include:

* Forming a multidisciplinary RAC task force to oversee RAC preparation,
management, and ongoing process improvement;
* Performing a high-level assessment of existing tools and processes to identify
current RAC exposure for errors and payment recoveries;
* Conducting an internal coding and documentation audit to assess current RAC
risk and quantify financial exposure for accounts dating back to October 1,
2007, based on key risk areas identified during the RAC demonstration project;
* Developing a formal process to educate staff and physicians about the
permanent RAC program, findings from the ongoing audit process and process
changes required to reduce the risk of future denials or payment recoveries;
* Developing a formal strategy to prepare for and manage the RAC process
(notifications, chart requests, staffing requirements, tracking, etc.) and
determine whether outside assistance is needed;
* Identifying a formal tool/system to track the RAC process (notifications,
chart requests, recoveries, appeals, etc.);
* Developing a formal RAC-specific appeals management process with case
management, legal and other compliance leadership.

For more information regarding Premier`s RAC solutions, please contact Premier
Consulting Solutions at pcs_info@premierinc.com or 877.777.1552.

About Premier Inc., 2006 Malcolm Baldrige National Quality Award recipient

The Premier healthcare alliance is more than 2,100 U.S. hospitals and
58,000-plus other healthcare sites working together to improve healthcare
quality and affordability. Premier maintains the nation's most comprehensive
repository of clinical, financial and outcomes information and operates a
leading healthcare purchasing network. A world leader in helping deliver
measurable improvements in care, Premier works with the Centers for Medicare &
Medicaid Services and the United Kingdom's National Health Service North West to
improve hospital performance. Premier has offices in San Diego, Charlotte, N.C.,
Philadelphia and Washington. Follow Premier on Twitter.

Premier Inc.
Alven Weil, 704-733-5797
alven_weil@premierinc.com

Copyright Business Wire 2009