Professional services giant KPMG dropped a bombshell this week when it released a report on a survey examining health care organizations' progress toward preparing for the ICD-10 implementation stating "Healthcare organizations are in for a rude awakening when they finally realize what the new standards will have on their bottom lines." The AMA chimed in saying between requirements for the ICD-10 conversion and Stage 2 Meaningful Use, 2014 is already shaping up to be a very busy year.
This week's Clinical Documentation News Roundup brings you information on KPMG's research and other reports that health care organizations are falling behind in ICD-10 conversion preparation.
Healthcare Entities Largely Unprepared for ICD-10 Implementation from KPMG: “With ICD-10 implementation less than 10 months away, health plans and providers haven’t fully determined how the new coding standards will affect their businesses, according to a recent poll conducted by KPMG LLP, the U.S. audit, tax and advisory firm. The KPMG poll, conducted from October to December of 2013, found that while the majority of payer and provider respondents acknowledged that they had completed an ICD-10 impact assessment (76 percent) and had allocated budget toward readiness efforts (72 percent), they were significantly deficient in preparing for key aspects of implementation. Comprehensive system testing, determination of impact on cash flow and revenue cycles were where the majority of respondents revealed that their respective organizations had not properly addressed the impact of ICD-10 implementation. ‘A full 50 percent stated that they had yet to estimate the new coding systems impact on their cash flow,’ said Wayne Cafran, an advisory principal in KPMG’s Healthcare & Life Sciences practice. ‘With estimates by those who did measure the impact tallying anywhere from $1 million to more than $15 million, healthcare organizations are in for a rude awakening when they finally realize what the new standards will have on their bottom lines.’”
ICD-10: Getting Ready When You'd Rather Ignore It from Medscape: “Many physician practices have avoided getting ready for ICD-10 for a variety of reasons: the clock is ticking. Implementation of the new code set is less than a year away. CMS has repeatedly stated that despite reports that small practices and systems may not be ready, there will not be another delay in the implementation date. Failure to prepare for ICD-10 could mean a delay in claims processing or denials. And delays and denials translate into empty bank accounts. What practical, concrete steps should a medical practice take?”
AMA Forecasts Busy 2014 with Stage 2 Meaningful Use, ICD-10 from EHR Intelligence: “The American Medical Association is gearing up for an action-packed year, says AMA President Ardis Dee Hoven, M.D. in a blog post. Between the implementation of ICD-10, the beginning of Stage 2 Meaningful Use, and several big federal changes, the top five biggest national issues to affect providers in the coming year are all hefty challenges. The repeal of the Medicare sustainable growth rate (SGR) will be one major issue to affect providers already strapped for cash and uncertain about the financial viability of hospitals and small, independent practices. While the temporary repeal, giving Congress three more months to come up with a permanent solution, will further the goals of accountable care and provide some stability for physicians in the future, not everyone is satisfied with the ‘significant improvements’ over the current system Hoven praises.”
ICD-10 Developments to Look for in 2014 from Government Health IT: “Healthcare organizations are going to have to make very smart decisions this year. And the best way to do that is to learn from the organizations that have completed a lot of the ICD-10 transition. Here's what you need to pay attention to: CMS will keep promising Oct. 1 is the deadline. Unless someone changes their minds. They're not going to hint about any deadline or requirement changes until the decision is firmly made. That's not saying they will make any decisions like that. The CMS doesn't make announcements like that until everything is figured out. And the timetable for figuring out and implementing deadline changes is shrinking. There isn't much time to make major moves. So each day that goes by only allows minor changes. Instead of watching CMS for deadline changes, it's going to be more productive to plan for an Oct. 1 implementation. CMS is going to be sharing a wealth of tutorials and information for procrastinating providers. If we're going to need to know something, CMS is going to be a source.”
What Providers are Doing Now to Prepare for ICD-10 from Fierce Health IT: “As the Oct. 1, 2014, deadline to convert to from ICD-9 to ICD-10 draws closer, healthcare providers who have yet to take significant action are likely growing increasingly anxious. During a webinar hosted by FierceHealthIT last month entitled ‘What to do NOW to prepare for ICD-10,’ provider representatives Colleen Deighan and Stephen Stewart discussed steps each of their organizations have taken to prepare for the shift. ‘The interesting thing is, the dynamics and the scope of what we're dealing with here is the same whether you're small or very, very large,’ Stewart, CIO at Henry County Health Center, a 74-bed hospital in Mount Pleasant, Iowa, said. ‘I can recall very vividly sitting in a [College of Healthcare Information Management Executives] conference in 2010 and hearing the first presentation on ICD-10 and a cold fear fell over me as I thought about the fact that there's a lot to do here and we haven't done anything yet.'”
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