ICD-10: It's Really Coming. Are You Ready?
CollaborateMD Blog

Are you properly preparing to meet the ICD-10 deadline of October 1, 2014? Did you know that all claims for health care services provided on or after October 1, 2014, must contain ICD-10 codes? Where in the transition process is your organization? It is important that everyone in your office has at least a general understanding of the ‘what’ and ‘why’ of ICD-10. A recent study conducted by American Health Information Management Association (AHIMA) indicates that healthcare providers are making slow -or no- progress toward ICD-10 implementation leaving the vast majority of providers with no plans, no budgets, and very little progress to report. AHIMA and CMS have predicted that at least 50 hours of ICD-10 training will be needed for each coder to successfully transition to ICD-10.

As your business partner, we want to ensure you are aware of the healthcare industry's key projections and equip you with relevant facts for more informed decision making:
  • ICD-9 codes will no longer be accepted on claims after October 1, 2014.

  • ICD-10 codes will not be recognized / accepted on claims before October 1, 2014.

  • Claims cannot contain both ICD-9 codes and ICD-10 codes.

  • ICD-10 implementation will affect every aspect of the patient, provider & facility encounter.

  • Implementation will require system changes, extensive training and considerable expenses.

  • CMS estimates claim denials will increase 100 - 200%.

  • CMS estimates receivables (A/R days) to increase 20 - 40%.

  • CMS estimates claim error rates to increase 6 - 10% based on improper coding.

What should your business be doing right now?
  • Identify all personnel whose job function requires the use or understanding of ICD-9 codes.

  • Identify all policies, procedures and protocols impacted by the specialty of ICD-10.

  • Determine training needs of all personnel.

  • Identify the costs associated with implementation.

  • Examine the impact of increased staffing.

  • Examine the impact of increased claim denials.

  • Examine the impact to departmental and physician productivity.

  • Identify the costs associated with implementation such as:
    • Courses

    • Books

    • Overtime

    • Reallocation of duties for personnel

    • Cost of account rework

Has your business examined the impact of increased claim denials?
  • Does your facility / physician practice have a denial management team?

  • Do your specific adjustment codes clearly identify denials, adjustments and write-offs?

  • What is your current denial rate, write-off amount?

  • What is the financial impact for denials / write-offs?

  • Is your business office trained appropriately?

  • Did you evaluate the impact to revenue and cash flow of:
    • Increased unbilled accounts

    • Increased denials

    • Increased late charges

    • Increased time of payment schedules

To help you, your staff and physicians gain a general understanding of the ICD-10 transition, please visit CollaborateMD’s exclusive training website to receive an overview of changes from ICD-9 to ICD-10.

To ensure success for your business, planning is critical. If you have not started the implementation process, please start now; the countdown clock is ticking.

Your CollaborateMD Team