Responding To a Wound Care Audit

Healthcare Defense Attorney and founder of Chapman Law Group discuses what to do if you receive a wound care audit.

Table of Contents

What Providers NEED to Know About Wound Care Audits

Wound care audits of health care practitioners have been on the rise in recent years. There are several reasons for this, including high costs, compliance risks, patient safety concerns and more. Both regulators and payers are closely watching payment submissions for audit possibilities.

Types of Audits

Let’s examine wound care audits in more detail, including what health care practitioners need to know:

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The Type of Audit Reflects Different Levels of Severity

UPIC, ZPIC and OIG audits are based on suspected fraud and are the most worrisome of all the audits for health care professionals. When these audits are conducted the auditor has a suspicion of fraud based on the volume of claims, the types of claims, the stratification of claims demonstrating outliers, etc.

RAC and SMRC audits can lead to fraud-based audits but generally are not focused on fraud or the suspicion of fraud. UPIC, ZPIC, and OIG audits in particular are far more worrisome and require outside assistance. However, all audits are severe and pose a risk to the provider.

All Audits Should not be Treated Alike

The severity of the audit often dictates the need for a more sophisticated response. Healthcare professionals though should respond quickly to ALL audits by including the requested information.

The initial record request for RAC, CERT and SMRC audits should be thoroughly reviewed to develop an understanding of why the records were requested before they are submitted. Don’t assume everything was done correctly when reviewing your records. Avoid internal biases by closely looking at the quality of records, compliance with National and Local Coverage Determinations (NCDs and LCDs), and billing/coding practices. Reviewing such details can help prevent benign audits from evolving into a more aggressive investigation.

Additionally, adhere to all deadlines, especially if an appeal is required. Be sure to seek legal counsel if the dollar amount outlined in the appeal is significant or you are in a high-risk practice.

UPIC, ZPIC and OIG audits require a more aggressive approach, and legal counsel should be contacted before responding to these audits. Remember the audit is being conducted because CMS and its contractors’ suspect fraud. Legal counsel should be retained before submitting any records. An independent privileged audit of the requested records may need to be conducted as well before submitting records.

Five Levels of Wound Care Audit Appeals

All audits except an OIG audit start with a request for records and a determination by the contractor. Following the initial determination there are five levels of appeal:

    1. Redetermination by a Medical Contractor
    2. Reconsideration by a Qualified Independent Contractor (QIC)
    3. Decision by the Office of Medicare Hearing and Appeals (OMHA)
    4. Review by Medicare Appeals Council
    5. Judicial Review in Federal District Court

OIG audits are often a precursor to a criminal investigation and are not appealable in the same way a CMS audit is. In this situation, OIG and DOJ employees often take a practice’s records without asking, signaling a serious situation. The OIG audit generally follows criminal procedural processes.

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The Perception of Possible Fraud with Wound Care Cases

The general practice of wound care using biologics or synthetic skin substitutes is considered to be one of the most common areas where health care fraud or abuse occurs. In 2025 CMS conducted a self-review, with the results revealing exponential growth in biologics and skin substitutes. This led to CMS officials placing more focus on the actions of wound care providers.

Surviving a Wound Care Audit

The first step for a provider to survive a UPIC, ZPIC or OIG audit is to ensure you are properly maintaining your records and following both national and local coverage determinations.

The reimbursement rate of the growing field of biologic or synthetic skin substitutes is extremely high, which is why CMS places all wound care providers using these products at high-risk. Knowing you are on the high-risk list makes it extremely important to follow the proper processes:

    1. Ensure medical necessity – Medical necessity is often subjective; however, necessity can be demonstrated and supported by appropriate records. When auditors review for medical necessity, they are looking for certain objective findings that tend to substantiate the necessity for elevating wound care to the use of biologics and synthetic skin substitutes.
    2. Failure of Conservative treatment Prior to using biologics or skin substitutes the provider must document the failure of conservative treatment. This generally means the medical record must document the standard of care for general wound management has been followed and failed. Regardless of whether you previously treated the patient and administered the standard wound care treatment to failure or you are taking over patient management, the failure of traditional approaches must be documented. The medical necessity for the use of more aggressive treatment using biologics or skin substitutes is essential and often lacking.
    3. Adequately describe the wound – As the application of conservative treatment fails the provider should begin measuring the wound and taking pictures regularly. Measuring and taking pictures in addition to detailed written descriptions of the wound establishes a couple of key elements.
        1. First, the wound is sufficiently serious to warrant the application of aggressive therapy such as biologics or synthetic skin substitutes, or other aggressive therapies.
        2. Second, the wound is responding to the treatment. CMS will not continue paying for aggressive treatment with biologics or synthetic skin substitutes unless the wound demonstrates progressive healing.
    4. Frequency of application One of the factors considered by CMS auditors is the frequency of dressing changes and use of biologics. There is a built-in bias here. Distributors prefer the frequent application of biologics or synthetic skin substitutes, and CMS prefers less frequent changes. Medical necessity lies somewhere in the middle. Whatever you do, make sure you can justify and document the necessity for dressing changes whatever the frequency.
    5. Use of E/M Codes – Dressing changes can usually be completed by a trained ancillary provider and do not require a medical provider. Sometimes the patient has underlying medical conditions that do require a medical provider’s presence, treatment, and management. When this is the case, providers should ensure the records properly document the underlying or co-morbid condition that requires treatment and justifies the use of an E/M code.
    6. Types of wounds Medicare Expects to Cover:
      1. Surgical wounds that must be left open to heal by secondary intention
      2. Infected open wounds induced by trauma or surgery
      3. Wounds with biofilm (biologics or synthetic skin substitutes)
      4. Wounds associated with complicating autoimmune, metabolic, and vascular or pressure factors
      5. Open or closed wounds complicated by necrotic tissue and/or eschar.

What Past Clients Are Saying

Karen Mason
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I had a complex case. Some of the billing done by my billing staff did not match billing done by a 3rd party auditor. Billing is an unusual skill. As many of you know, excellent billers often disagree about the best way to bill for the exact same services. Ron Chapman Sr handled my case. He was able to resolve my case. and his rates were reasonable. My local attorneys did not have the kind of experience necessary to deal with the large bureaucracy of the government. He took what began as a lot of scary threats by the government, and reached a simple solution.

You’ve been audited – now what?

    1. If you are a wound care provider facing UPIC, ZPIC or OIG audit investigation immediately contact legal counsel that has experience in helping health care providers. Chapman Law Group attorneys, who specialize in wound care audits and other health care provider legal matters, often have the records requested by an audit immediately reviewed by an outside professional coder specializing in wound care (not your biller).
    2. Once contacted, Chapman Law Group attorneys will coordinate the submission of the requested records.
    3. They will often pull a sample of your records for review to see if any problems exist on a larger scale.
    4. Chapman Law attorneys will coordinate a compliance audit and educational training for your staff and yourself if needed to ensure future records are sufficient to justify treatment and if necessary, document a corrective action plan.
    5. Our attorneys will begin and coordinate the wound care audit appeal process and take steps necessary to try and prevent a premature claw back.
    6. Finally, Chapman Law Group may retain a medical expert, statistician, and/or professional coder to round out the appeal team and be available for testimony.

Why You Should Call Chapman Law Group When Facing a
Wound Care Audit

Understanding how CMS and its contractors pursue wound care audits is essential for protecting your practice, avoiding crippling clawbacks, and ensuring your Medicare credentials remain intact. At Chapman Law Group, we defend providers nationwide in UPIC, ZPIC, OIG, and other audit investigations. With decades of experience in health care defense and a dedicated focus on wound care compliance, our attorneys know how to challenge audit findings, coordinate expert reviews, and build strong appeals. If you are under audit or concerned about potential exposure, call us today. Our team is ready to protect your rights, safeguard your license, and keep your practice open.

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Individuals depicted or heard in the foregoing media appearance or images may no longer be current attorneys, employees, members or affiliates with Chapman & Associates, PC or The Chapman Law Group (the “Firm”), including Ronald W. Chapman, II who is no longer affiliated with the Firm. For a current listing of the attorneys and services available with the Chapman Law Group, please see https://chapmanlawgroup.com/team.

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