Ready or not here ICD-10 comes

With less than three months until the implementation of the long-awaited ICD-10, it appears many providers are still unprepared – particularly in the areas of testing and assessing the impact it will have on revenue.

A new report published by AHIMA and the eHealth Initiative finds that while half of the respondents had completed test transactions with payers or claims clearinghouses, just 17 percent indicated that they had completed all external testing.

The findings are based on responses from 271 healthcare organizations: 51 percent from large organizations, 21 percent from medium organizations and 28 percent from small organizations.

So, what are these organizations doing to prepare? Most of those surveyed (78 percent) said they had provided ICD-10 awareness and educational materials to staff, while 73 percent have formed a team to lead efforts to prepare for implementation and 72 percent have trained staff using the new codes. From there, ICD-10 preparation takes a dip, with just 66 percent performing technical upgrades to support ICD-10 on health information systems.

The report goes on to state that in order to maintain the ICD-10 skills of their staff in the wake of delays in the compliance deadline, 74 percent of organizations provided additional training and 65 percent are dual coding transactions.

“If an organization has not completed many of the steps leading up to implementation, they likely aren’t prepared to test ICD-10 transactions,” the report states. “Smaller organizations and clinics and practices were in fact less likely to have completed many of the steps to prepare for ICD-10.”

Just 19 percent of the respondents stated they had no plans to conduct end-to-end testing, the most rigorous way to test ICD-10 transactions. Cost, a lack of knowledge about now to conduct testing, and an unwillingness on the part of business partners to perform tests were among the reasons.

Smaller organizations and clinics and practices were in fact less likely to have completed many of the steps to prepare for ICD-10.

Lack of preparedness isn’t the only concern. Many providers worry that the first year of ICD-10 will negatively impact their revenue and fear an increased number of denied claims. Despite these concerns, just 34 percent said they have conducted a revenue impact assessment.

Although ICD-10 implementation is to begin Oct. 1, just 23 percent of responding organization have developed a contingency plan if problems should occur.

As we wrote in a July 13 blog, the Centers for Medicare & Medicaid Services has announced that it will give providers some leeway as they make the transition. However, that does not mean you should continue to delay preparations. Now is the time to get your healthcare practice up to speed and prepared for ICD-10.

CMS to cut providers a break when it comes to ICD-10 deadline

The Health Law Offices of Anthony C. Vitale can assist clients with ICD-10 training to make sure their practice is prepared. Contact us for additional information.