The Recovery Audit Contractor (RAC) program has created a new level of Medicare claims review that brings with it significant and potentially expensive challenges for hospitals, health systems, physicians, SNFs, rehabilitation facilities, home health agencies and DME suppliers. The program’s mission is to reduce improper Medicare payments through the efficient detection and collection of overpayments, the identification of underpayments, and the implementation of actions that will prevent future improper payments. Nationwide implementation of the RAC process is scheduled to take place by January 1, 2010.