Performant Financial Corporation Awarded CMS RAC Region 2 Contract

Rhea-AI Summary

Performant Financial Corporation (NASDAQ: PFMT) has secured an 8.5-year contract from the Centers for Medicare and Medicaid (CMS) as the Region 2 Recovery Audit Contractor. This contract, originally awarded on March 24, 2022, was reaffirmed by CMS following a corrective action process. Performant will conduct post-payment reviews of Medicare claims in states including TX, IL, and MN to recover improperly paid claims. This contract extends Performant's ten-year relationship with CMS, showcasing its competitive technology and commitment to payment integrity services.

Positive

• Award of an 8.5-year RAC contract from CMS enhances revenue potential.
• Reaffirmation of the contract confirms the quality and value of Performant's services.
• Continues a long-term partnership with CMS, enhancing company credibility.

Negative

• None.

LIVERMORE, Calif.--(BUSINESS WIRE)-- Performant Financial Corporation (Nasdaq: PFMT), (“Performant”, “the Company”), a leading provider of technology-enabled payment integrity, eligibility and related analytics services, today announced that the Centers for Medicare and Medicaid (CMS) awarded Performant an 8.5 year contract to serve as the Region 2 Recovery Audit Contractor (RAC). This contract was initially awarded via a full-and-open competitive procurement on March 24, 2022 and following a voluntary corrective action process that was initiated by CMS, the agency re-affirmed its initial award determination, that Performant’s proposal represents the best value for the Government.

Region 2 consists of the following states: IL, MN, WI, NE, IA, KS, MO, CO, NM, TX, OK, AR, LA, and MS. As the Region 2 RAC, Performant will perform post-payment reviews of Part A and B Medicare fee-for service claims to identify and support the recoupment of improperly paid claims. Any updates related to the contract will be posted on the Company’s CMS RAC Provider webpages.

“This contract win validates our competitive technology platform and highlights our unique ability to compete,” stated Simeon Kohl, President of Performant. “This extension of our more than ten-year partnership with CMS underscores our team’s hard work and dedication. It is an honor to serve CMS, and we are grateful to have the quality and value of our work affirmed through this award.”

In addition to Region 2, Performant is also the RAC for Region 1, which consists of 11 states across the Northeast and eastern-Midwest region, and the nationwide Region 5 for Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) and Home Health and Hospice (HH&H) claims. Further, Performant is the exclusive contractor for the Medicare Secondary Payer (MSP) Commercial Repayment Center contract and was recently selected as the sole national medical reviewer for the HHS Office of the Inspector General.

About Performant Healthcare Solutions

Performant Healthcare Solutions is a leading provider of technology-enabled audit, recovery, and analytics services in the United States with a focus in the healthcare payment integrity industry. Performant works with healthcare payers through claims auditing and eligibility-based (also known as coordination-of-benefits) services to identify improper payments. The Company engages clients in both government and commercial markets. The Company also has a call center which serves clients with complex consumer engagement needs. Clients of the Company typically operate in complex and highly regulated environments and contract for their payment integrity needs in order to reduce losses on improper healthcare payments.

Powered by a proprietary analytic platform and workflow technology, Performant also provides professional services related to the recovery effort, including reporting capabilities, support services, customer care and stakeholder training programs meant to mitigate future instances of improper payments. Founded in 1976, Performant is headquartered in Livermore, California.

To learn more, please visit https://www.performanthealth.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20221102005274/en/

Richard Zubek

Investor Relations

925-960-4988

investors@performantcorp.com

Source: Performant Financial Corporation

FAQ

What is the significance of Performant's contract with CMS?

The contract allows Performant to recover improperly paid Medicare claims, enhancing its revenue and validating its competitive technology.

How long is Performant's contract with CMS?

Performant's contract with CMS is for a duration of 8.5 years.

Which states are included in Region 2 of the contract?

Region 2 includes IL, MN, WI, NE, IA, KS, MO, CO, NM, TX, OK, AR, LA, and MS.

When was the CMS contract awarded to Performant?

The contract was initially awarded on March 24, 2022, and was recently reaffirmed.

What services will Performant provide under the CMS contract?

Performant will conduct post-payment reviews of Medicare fee-for-service claims to identify and recover improperly paid claims.