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What is a post-service, prepayment audit (PPM Audit)?

audit post-service prepayment
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What is a post-service, prepayment audit (PPM Audit)?

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A. A PPM Audit (formerly known as Special Claims Review [SCR]) is a utilization control process that the Department of Health Care Services (DHCS) uses to ensure that providers are filing accurate Medi-Cal claims. Providers that are audited on a prepayment basis receive a letter explaining specific billing instructions necessary to pass professional medical review before claims payment. Claims subject to a PPM Audit must be submitted with documents required to substantiate the nature, extent and medical necessity of the services claimed. A PPM Audit is a post-service, prepayment audit of claims, established by Welfare and Institutions Code section (W&I Code ยง) 14133, subdivision (b). It does not constitute a sanction or punishment for misconduct, but instead is used by the DHCS to satisfy its oversight responsibilities.

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