Unseen Costs of ICD-10 Implementation

What are some of the overlooked unforeseen costs of implementation?

  • Practices may secure cash flow savings or a line of credit to help weather the storm during the transition; it is suggested that practices have a minimum of the equivalent of 30 days of operating capital on hand
  • Measure and budget for money and time
  • Education and training tools
  • Printing of hard paper items such as forms and training materials
  • Resource materials
  • Federal, state and local agencies
  • Order entry
  • Health plans – coverage documents and guidelines (update any benefits or terms tied to specific diagnostic and service codes – i.e. carve outs, case rates and capitated services)
  • Patient registration

What are reasonable estimates for loss of revenue and productivity during conversion, training and testing?

  • Expect an initial 30-40% decrease in productivity that will never fully be made up because of the sheer volume of codes in ICD-10
  • ICD-10 contains 69,000 codes compared to 13,000 codes in ICD-9
  • Technology and training can help make up most of the difference and get you close to where you were before the ICD-10 transition

Can you give an example?

  • A mid-sized physician practice (6-50 providers) could incur as much as $300,000 in hard costs to adopt ICD-10
  • This total may increase to $3 million for large groups (51+ providers)

Source: Presence Health ICD-10 Presentation, 2/26/14