PRG-Schultz Announces Subcontracts with Three Medicare Recovery Audit Contractors
ATLANTA--(BUSINESS WIRE)--Feb. 9, 2009-- PRG-Schultz International, Inc. (Nasdaq: PRGX) the world’s largest recovery audit firm, today announced that the Company has withdrawn its Government Accountability Office protest of the Medicare Recovery Audit Contractor (RAC) contract awards by the Centers for Medicare and Medicaid Services (CMS). The Company also announced today that it has entered into subcontracts with three of the four Medicare RAC contract awardees.
The subcontracts, with CGI Technologies and Solutions Inc., Diversified Collection Services, Inc., and HealthDataInsights, Inc., provide the Company with the opportunity to participate in CMS’s national Medicare RAC program by auditing certain Medicare Part A and Part B claims in three of the program’s four geographic regions. Based on the most current publicly available data from CMS, management believes that the pool of claims that the Company will be auditing under the subcontracts, collectively, represents approximately 10% of the total pool of Medicare claims expected to be audited under the nationwide Medicare RAC program.
“We are pleased to announce our new relationships with CGI, DCS, and HDI,” said Romil Bahl, the Company’s President and CEO. “We look forward to working with each of them to exceed CMS’s expectations for the Medicare recovery audit contractor program in the three regions where we will be providing services.”
About PRG-Schultz International, Inc.
Headquartered in Atlanta, PRG-Schultz International, Inc. is the world’s leading recovery audit firm, providing clients throughout the world with insightful value to optimize and expertly manage their business transactions. Using proprietary software and expert audit methodologies, the Company’s industry specialists review client purchases and payment information to identify and recover overpayments.
Forward Looking Statements
In addition to historical information, this press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include both implied and express statements regarding the subcontracts with CGI, DCS and HDI, and the size of the business opportunity inherent in the subcontracts. Such forward looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from the historical results or from any results expressed or implied by such forward-looking statements. Risks that could affect the Company's future performance include potential legislative and regulatory changes regarding the Medicare RAC program, the Company’s ability to attract and retain personnel, revenues that do not meet expectations or justify costs incurred, the Company's ability to replace the declining revenues from its core accounts payable services, uncertainty in the credit markets, changes in the market for the Company's services, client bankruptcies, loss of major clients, and other risks generally applicable to the Company's business. For a discussion of other risk factors that may impact the Company's business, please see the Company's filings with the Securities and Exchange Commission, including its Form 10-K filed on March 12, 2008. The Company disclaims any obligation or duty to update or modify these forward-looking statements.
Source: PRG-Schultz International, Inc.