; and (II) in the case that the Secretary determines to so reduce payment to the contractor, the amount of such payment reduction. (iv) Methodology for calculation of overturned complex audit denial overturn rate (I) Calculation of overturn rate The Secretary shall calculate a complex audit denial overturn rate for a recovery audit contractor for a fiscal year by— (aa) determining, with respect to the contract entered into under paragraph (1) by the contractor, the number of complex audit denials issued by the contractor under the contract (including denials issued before such fiscal year and during such fiscal year) that are overturned on appeal; and (bb) dividing the number determined under item (aa) by the number of complex audit denials issued by the contractor under such contract (including denials issued before such fiscal year and during such fiscal year). (II) Fairness and transparency The Secretary shall calculate the percentage described in subclause (I) in a fair and transparent manner. (III) Accounting for subsequently overturned appeals The Secretary shall calculate the percentage described in subclause (I) in a manner that accounts for the likelihood that complex audit denials issued by the contractor for such fiscal year will be overturned on appeal in a subsequent fiscal year. (IV) Complex audit denial defined In this subparagraph, the term complex audit denial means a denial by a recovery audit contractor of a claim for payment under this title submitted by a hospital, psychiatric hospital, or critical access hospital that is so denied by the contractor after the contractor has— (aa) requested that the hospital, psychiatric hospital, or critical access hospital, in order to support such claim for payment, provide supporting medical records to the contractor