The RCxRules Blog

Not So Fast: Healthcare Undergoes ICD-10 Growing Pains

ICD-10 Is Not Going As Smoothly As We Originally Thought

Last month we talked about how the implementation of ICD-10 appeared to be going well, according to early assessments. Here’s a little of what we reported:

So far, according to the press, none of these concerns has reared its head and all is running pretty smoothly. CMS seems to be sticking to its promise to, as we reported in an earlier blog on the subject, not aggressively deny provider claims for simple diagnosis-coding mistakes as long as the submitted code falls within the correct family. A policy it intends to continue through the first year of ICD-10.

Today, slightly farther removed from the October 1 rollout, ICD-10 is having some identifiable adverse effects on productivity and media outlets were premature in stating all was well with its arrival. Initial results indicate the industry is still bracing for a significant impact. Let’s take a look at the truth behind today’s ICD’s growing pains and the fact

According to Healthcare Informatics, large hospitals reported 30 to 45 percent productivity reduction on the inpatient side and 20 to 40 percent productivity reduction on the outpatient side since the implementation of ICD-10 codes on October 1. Similarly, Heath Data Management reported that many smaller hospitals weren’t able to fully prepare for ICD-10 and may be realizing negative financial outcomes.

Here’s a sampling of headlines from Healthcare Technology company RemitDATA about some of the results of the transition:

  • Decreased coder productivity. Healthcare outsourcing solutions provider Himagine Solutions Inc. recently reported that the ICD-10 transition is negatively impacting inpatient and outpatient coder productivity at some healthcare facilities.
  • Frustration by physicians, who feel the ICD-10 transition has taken time away from patient care. According to a poll conducted post-transition by SERMO, of 200 physician members surveyed, 86 percent feel the transition is taking time away from patient care, mainly due to documentation issues.
  • Declines in hospital productivity and claims submissions delays. Politico’s David Pittman recently reported that the ICD-10 switchover has caused some hospitals’ productivity to suffer. According to The Advisory Board Company, hospitals surveyed say it took an average of 3.8 days to submit claims after care during September, or pre-ICD-10 conversion. However, post-conversion, it took them an average of 6.6 days to submit claims in October.

So what does the future hold for ICD-10? According to AAPC Vice President of Strategic Development, Rhonda Buckholtz there are three challenges facing coders in 2016:

  • The need for continued growth in learning the new code set
  • Increasing their skill levels
  • Gaining a better understanding of chronic conditions for the highest level of code assignment

In addition, Buckholtz states there is a need for continuing education of clinical documentation improvement efforts among providers. Finally, there will be a much larger number of new codes and other modifications on Oct. 1, 2016. Many code proposals could not be implemented during the code freeze and have been waiting to go into effect.

We will continue to keep an eye on the ICD-10 rollout and the challenges to productivity that have come along with it. Check back with us soon. In the meantime, see what RCxRules can do to to minimize the adverse effect that the ICD-10 transition will have on your organization’s revenue cycle performance!

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