Medicare Compliance & Reimbursement

Improper payments in the federal healthcare system cost the government millions but can be hard to identify. President Obama aims to make it simpler to not only find the money -- but to reclaim it.

On March 10, the president issued a memorandum about finding and recapturing improper payments, noting that he and his administration intend to expand the use of "payment recapture audits."

"A payment recapture audit is a process of identifying improper payments paid to contractors or other entities whereby highly skilled accounting specialists and fraud examiners use state-of-the-art tools and technology to examine payment records and uncover such problems as duplicatepayments, payments for services not rendered, overpayments, and fictitious vendors," the memorandum noted.

The Office of Management and Budget has 90 days following the memorandum's issue date to develop guidance on how to carry out the president's payment recapture plans.