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    Physicians unprepared for ICD-10 cash flow disruptions, survey says

     

    As the October 1, 2014 deadline nears for the implementation of the International Classification of Diseases-10th Revision (ICD-10), a new survey shows that physicians and health plans may be largely unprepared for the disruption that change will bring to their cash flow.

    The survey found that although 76% of respondents had completed an ICD-10 impact assessment, about half of respondents had not determined what effect it will have on their revenue cycles and cash flow.

    KPMG LLP, a tax, audit and advisory firm, conducted the survey at the end of a series of webcasts from October 17 through December 9, 2013. The respondents were from health plans and healthcare providers at hospitals and group practices.

    “As October 1 inches closer, healthcare organizations have their work cut out to properly absorb the impact that the new coding will have on their businesses,” Wayne Cafran, an advisory principal in KPMG's Healthcare & Life Sciences practice, said in a press release. “A full 50% stated that they had yet to estimate the new coding system's impact on their cash flow. 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.”

    About 45% of survey respondents said that denial/variance management would be most affected during the transition.

    But many health plans and providers have already begun testing. The survey found that 42% of respondents had already begun testing their coding systems. The Centers for Medicaid and Medicare Services plans to conduct front-end claims testing during the week of March 3.

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    • Anonymous
      ICD 10 is like a bus full of school kids driving towards a cliff--we know it will be a disaster, but we want to quantitate the damage to the bus and determine the cause of death in each occupant.
    • Anonymous
      The ICD-10 coding scheme contributes nothing positive to the patient experience, the diagnostic process, and nothing to legitimate, results producing medical research. As such, the ICD-10 implementation represents an exceedingly costly, time consuming, example of regulatory abuse whose burden falls squarely upon the shoulders of medical practitioners and medical service organizations. For many, it makes better sense to quit participating in governmental health insurance programs and commercial health insurance networks. Health insurance products today are providing less coverage, at a higher overall cost - and the future looks even worse. Why continue participating in a regulatory game where the rules are designed to be punitive against the participants? When the cost of providing medical services exceed the regulatory mandated pricing for those services, those services are severely reduced or eliminated. Check out Cuba and Venezuela. That is our future.

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