How to Estimate ICD-10 Transition Costs

The tenth revision of the International Statistical Classification of Diseases and Related

Health Problems (ICD-10) allows for the tracking of diseases and the sharing of

information between care providers, and contributes to the overall better health

worldwide. For hospitals, doctors, and all other medical care providers, the time to bring

your institution up to ICD-10 compliance is now.

The initial deadline to become compliant has already passed, but the government has

chosen to extend the deadline until October 1st, 2015. After that date passes, however,

non-compliant individuals and organizations could miss out on grants and benefits, or

face fines or other repercussions.

The initial cost associated with making the transition is what has stopped many of the

holdouts from attaining compliance, but while there will inevitably be some costs

associated with making the change, in the long run it’s a necessary and beneficial thing. It

is important to understand what to expect from the transition, and some factors to

consider that can help you begin estimating what it will take to get up to date.

Some major factors that can impact the cost of the transition are medical coding and

certification expenses, revenue cycle changes, and project management, IT, and other

extra staff costs. The new coding requirements will mean that certified, professional

coders will be in short supply. ICD-9 certified coders will have to receive ICD-10

training in order to understand the specific differences with the new edition.

There are many organizations, like LS Coding & Education, that can help find, train, or

retrain coders and consult with organizations about their coder options. During this

period, when many institutions are making the transition to ICD-10 compliance, there

will be a drop in coder productivity as they adapt to new regulations and procedures;

however, coder productivity and coder salaries should stabilize after 2015, once there has

been time for organizations to complete their transition and understand what the “new

normal” will be like.

There will also be an initial expense if an institution’s coding tools (encoders, abstracts,

etc.) have to be upgraded or replaced, but those are usually outdated pieces of equipment

that need or would soon need to be changed out, anyway. The IT department will be

significantly impacted during the install period for the new hardware and software,

dealing with any technical issues that arise during the transition and repairing all errors

caused by user mistakes due to inexperience with the ICD-10.

Physicians will also have to be trained to use the proper codes, and there may be a

learning period where errors increase due to improper coding, but these, too, should

return to pre-transition levels, with time. Additional hospital staff may be required during

the implementation process, especially in the areas of project management, training,

communications, public relations, risk management, and quality assessment, among

others.

While the enormity of the task may seem daunting, the transition to ICD-10 compliance

is a very manageable task. Most of the difficulty will come during a one to two month

period, as new processes and equipment are put in place and the necessary adjustments to

those changes are made. After that, business will settle back into a routine, and

organizations should not expect greater many more operating costs going forward. It is

better for patients, caregivers, and world health, in general, if providers make the change,

so be proactive and initiate the evolution, now, instead of waiting for the deadline to

force your hand.