ICD-10 implementation costs concern practices
When it comes to transitioning to ICD-10 codes, healthcare practices report substantial fears over reduced cash flow and lack of payer readiness, according to a recent study of 350 providers by Navicure. The report also finds that a large majority of providers are delaying preparations.
Many small practices aren’t on track for ICD-10
Only 21% of those surveyed said they feel they are on track with preparation efforts. A majority of the 350 respondents were practice administrators or billing managers from practices with one to ten providers.
The findings from the study also show that:
67% don’t think ICD-10 will be delayed again.
59% of respondents reported the potential impact on revenue and cash flow is their greatest concern.
41% of respondents cite lack of payer readiness as the most challenging issue. End-to-end testing with payers remains a priority for practices, though a growing number of practices are opting out of testing opportunities.
58% paused their ICD-10 preparation efforts when the last delay was announced.
81% are still optimistic they’ll be ready when the transition takes place.
The Journal of the American Health Information Management Association places the cost of implementation at $4,372 for practices with a single provider and $11,028 for practices with six providers ($1,838 per provider). The American Medical Association says the change will likely cost a bit more. They estimate small practice costs will range from about $56,000 to more than $226,000. Medium practices will pay between $213,300 and $824,700 for implementation; costs for large practices are predicted to run between $2 million and $8 million.
Hospitals are better prepared
A new report by market research platform company peer60 suggests that American hospitals will spend billions on healthcare technology in 2015, especially making investments in the ICD-10. According to peer60, feedback was received by decision-makers at 25% of American hospitals.
The research show that nearly 60% of hospitals will address ICD-10 migration in 2015. More than half of hospitals will purchase population health management solutions.
“Healthcare technology is advancing rapidly,” peer60 CEO Jeremy Bikman said. “This report shows exactly where billions are going to be spent by American hospitals in 2015 to comply with government mandates and to better compete in this rapidly changing marketplace.”
Practice Fusion makes ICD-10 easy
Practice Fusion’s cloud-based electronic health record will make ICD-10 implementation easier for your practice and help you avoid productivity and cash flow loss:
No software to download or install. Your EHR and billing software can be automatically updated for ICD-10.
No need to adjust your reimbursement practices. Your EHR and billing software will ensure your ICD-10 transactions are working smoothly well before the switchover.
Access your files from anywhere. Need to add a code to a chart? Access your files from anywhere you have an internet connection.
Visit our ICD-10 Center
Practice Fusion’s Director of Clinical Program Management will provide an overview of the changes to expect with ICD-10, as well as how to transition to ICD-10 in your daily workflows.
Source: Scott Rupp at NueMD