Preparing for ICD-10’s Financial Impact

Information about Preparing for ICD-10’s Financial Impact

Published on July 15, 2014

Author: CertifiedCoderTraini

Source: authorstream.com

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PowerPoint Presentation: Preparing For ICD-10’s Financial Impact PowerPoint Presentation: By October 2015, health care providers are required by law to change their coding method from the ICD-9 to the ICD-10. This changeover will be expensive in terms of software, productivity dips during the transition, training and other costs. Financially prudent practices will estimate the cost of the changeover and set budgets accordingly. ICD Changeover Draws Near PowerPoint Presentation: What Is The ICD-10? The ICD-10 is an update to the ICD-9 that will allow more accurate coding. The ICD-9 is more than 30 years old and can no longer accurately reflect modern medicine. The new coding system takes into account new diagnoses and treatments that the ICD-9 cannot accurately reflect. It also can be easily expanded to include new discoveries. PowerPoint Presentation: How Much Will It Cost? It’s no surprise that such a huge shift will come with costs to health care providers. A recent American Medical Association study estimated the following costs related to ICD-10 implementation: Small practice: $56,639-$226,105 Medium practice: $213,364-$824,735 Large practice: $2,017,151-$8,018,364 PowerPoint Presentation: What Are The Costs Of Transition? Increased documentation demands New software purchases Decreased productivity during the transition Billing inaccuracy during the changeover Education costs PowerPoint Presentation: Short & Long Term Costs Some of the increased costs associated with the changeover will be short-term, while others will have a long-reaching impact on practices. Costs related to productivity, accuracy, denial of claims and renegotiation of contracts are expected to be high in the near-term future, leveling off as practices acclimate to the ICD-10. Costs related to the denial of claims and renegotiation of contracts will also continue to have a moderate effect on cost over several years. PowerPoint Presentation:   Typical Small Practice Typical Medium Practice Typical Large Practice Training $2,700-$3,000 $4,800-$7,900 $75,100 Assessment $4,300-$7,000 $6,535-$9,600 $19,320 Vendor/Software Upgrades $0-$60,000 $0-$200,000 $0-$2,000,000 Process Remediation $3,312-$6,701 $6,211-$12,990 $14,874-$31,821 Testing $15,248-$28,805 $47,906-$93,098 $428,740-$880,660 Productivity Loss $8,500-$20,250 $72,649-$166,649 $726,487-$1,666,487 Payment Disruption $22,579-$100,349 $75,263-$334,498 $752,630-$3,344,976 Total Costs $56,639-$226,105 $213,364-$824,735 $2,017,151-$8,018,364 Cost Breakdown By Source Source: AMA PowerPoint Presentation: Get started now making sure your software – and that of your vendors and payers – are up-to-date and ready to seamlessly process the new ICD-10 codes. If your payers and vendors aren’t up to speed, you may want to politely suggest that failure to get up to speed may result in your practice seeking new payers and vendors. Save up some cash to keep your practice in good financial health if some hiccups occur on your way to adjusting to the new system. A line of credit may also help. Get a good idea of how your practice codes, the turnaround time on claims and what impact substantial delays will have. Knowing your metrics will help you better prepare. Tips To Minimize Costs PowerPoint Presentation: Who Benefits From ICD-10? Although ICD-10 will be costly to implement, in the long run it will benefit patients and the medical community, according to industry experts. Doctors will benefit by having more accurate records and a more efficient system of billing resulting from the code changes. Research will also be more accurate thanks to more detailed records. PowerPoint Presentation: About LS Coding & Education LLC LS Coding & Education, LLC provides training for professional medical coders in the Tucson area, enabling them to get the certification they need to attain AAPC certification. LS Coding & Education offers online and in-person classes aimed at quickly teaching coders medical terminology, ICD-10 codes and other coding protocols necessary for them to pursue a successful career in this growing field. For more information, visit http://cpc.certifiedcodertraining.com/ or call 866-737-3701.   

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