Part one of a two-part series discusses on how to keep good records to avoid a Recovery Audit Contractor Program (RAC) audit. The program was designed to control the loss of millions of dollars in improper payments to providers with a focus on coding errors and documentation quality. The Centers for Medicare & Medicaid Services (CMS) has stated that the purpose of the program is to help providers avoid submitting claims that do not comply with Medicare rules and to lower claims' error rates. The RAC contractors have very interactive and sophisticated software to analyze Universal Billing and MDS clinical assessment documents submitted for payment. When a RAC performs an automated review (offsite with no provider notification), no review of medical records is needed before the demand for repayment is issued. CMS will require that they justify their audit activity and all complex reviews will need "good cause" before the review is requested.