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Physician practices’ ICD-10 readiness
affects your organization ̶ ensure
they’re prepared
Presented by Ken Bradley
Agenda
ICD-10: Time to take a pulse
Reasons why practices haven’t prepared
Steps to prepare and how to prioritize them
Tools to include in your outreach programs
How to use collaboration to share knowledge
and reduce costs
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© 2014 Navicure, Inc.
ICD-10: Time to take a pulse
Remember ICD-10?
Must be used by everyone in
all HIPAA transactions:
October 1, 2013
October 1, 2014
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It Isn’t Going Away
HR 4302, the bill to delay SGR a
year and ICD-10 for at least a year
means we will have a new date.
The law doesn’t say ICD-10’s
implementation is repealed, only
that it is delayed.
New ICD-10 deadline is most likely
going to be October 1, 2015
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You Want Your Practices to Be Prepared
Worst Case Scenario
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You Want Your Practices to Be Prepared
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ICD-10 Road?
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Unfortunately, It’s More Like
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And Getting There Requires
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Who, Where, How, When, Why
Diagnosis codes are used everywhere by
everybody
Your entire staff • Administrative and clinical
In nearly all your paper and electronic systems
• A new format must be accepted.
Throughout most business processes • Likely represents changes to nearly all clinical, financial and administrative
processes.
Remember that all people, processes and systems must
be able to accommodate both code sets for some time.
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In Fact, ICD-10 May Be Healthcare’s
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Where Are Your Practices?
ICD-10 is not going to happen!
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Started? Maybe
We’ve started, I think. I’m not really sure.
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Started? Yes
We’ve started and have done some things!
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Finished (So They Think)
We’re done!
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Reasons why practices haven’t prepared
Practice Preparation Status
Navicure’s second national ICD-10
practice readiness survey 74% of respondents hadn’t begun
implementing their ICD-10 transition plan,
but most were confident they would be
prepared by the original October 1, 2014
deadline.
Learn more at: www.navicure.com/surveytwo
MGMA Reported in MGMA Connection April 2014
• Less than 10% of practices reported
significant ICD-10 progress
Learn more at: www.mgma.org
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So Why Aren’t Practices More Prepared?
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Costs
*Nachisom Associates, 2014
• 201
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Typical Small Practice Typical Medium Practice Typical Large Practice
Total 2008 Costs Estimate $83,290 $285,195 $2,728,780
Training $2,700 ‐ $3,000 $4,800 ‐ $7,900 $75,100
Assessment $4,300 ‐ $7,000 $6,535 ‐ $9,600 $19,320
Software Upgrades $0 ‐ $60,000 $0 ‐ $200,000 $0 ‐ $2,000,000
Process Remediation $3,312 ‐ $6,701 $6,211 ‐ $12,990 $14,874 ‐ $31,821
Testing $15,248 ‐ $28,805 $47,906 ‐ $93,098 $428,740 ‐ $880,660
Total Pre-Implementation $25,560 ‐ $105,506 $65,452 ‐ $323,588 $538,034 ‐ $3,006,901
Productivity Loss $8,500 ‐ $20,250 $72,649 to $166,649 $726,487 ‐ $1,666,487
Payment Disruption $22,579 ‐ $100,349 $75,263 ‐ $334,498 $752,630 ‐ $3,344,976
Total Post-Implementation $31,079 ‐ $120,599 $147,912 ‐ $501,147 $1,479,117 ‐ $5,011,463
Total 2014 Costs Estimates $56,639 ‐ $226,105 $213,364 ‐ $824,735 $2,017,151 ‐ $8,018,364
Costs
*Nachisom Associates, 2014
• 201
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© 2014 Navicure, Inc.
Typical Small Practice Typical Medium Practice Typical Large Practice
Total 2008 Costs Estimate $83,290 $285,195 $2,728,780
Training $2,700 ‐ $3,000 $4,800 ‐ $7,900 $75,100
Assessment $4,300 ‐ $7,000 $6,535 ‐ $9,600 $19,320
Software Upgrades $0 ‐ $60,000 $0 ‐ $200,000 $0 ‐ $2,000,000
Process Remediation $3,312 ‐ $6,701 $6,211 ‐ $12,990 $14,874 ‐ $31,821
Testing $15,248 ‐ $28,805 $47,906 ‐ $93,098 $428,740 ‐ $880,660
Total Pre-Implementation $25,560 ‐ $105,506 $65,452 ‐ $323,588 $538,034 ‐ $3,006,901
Productivity Loss $8,500 ‐ $20,250 $72,649 to $166,649 $726,487 ‐ $1,666,487
Payment Disruption $22,579 ‐ $100,349 $75,263 ‐ $334,498 $752,630 ‐ $3,344,976
Total Post-Implementation $31,079 ‐ $120,599 $147,912 ‐ $501,147 $1,479,117 ‐ $5,011,463
Total 2014 Costs Estimates $56,639 ‐ $226,105 $213,364 ‐ $824,735 $2,017,151 ‐ $8,018,364
Costs
*Nachisom Associates, 2014
• 201
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© 2014 Navicure, Inc.
Typical Small Practice Typical Medium Practice Typical Large Practice
Total 2008 Costs Estimate $83,290 $285,195 $2,728,780
Training $2,700 ‐ $3,000 $4,800 ‐ $7,900 $75,100
Assessment $4,300 ‐ $7,000 $6,535 ‐ $9,600 $19,320
Software Upgrades $0 ‐ $60,000 $0 ‐ $200,000 $0 ‐ $2,000,000
Process Remediation $3,312 ‐ $6,701 $6,211 ‐ $12,990 $14,874 ‐ $31,821
Testing $15,248 ‐ $28,805 $47,906 ‐ $93,098 $428,740 ‐ $880,660
Total Pre-Implementation $25,560 ‐ $105,506 $65,452 ‐ $323,588 $538,034 ‐ $3,006,901
Productivity Loss $8,500 ‐ $20,250 $72,649 to $166,649 $726,487 ‐ $1,666,487
Payment Disruption $22,579 ‐ $100,349 $75,263 ‐ $334,498 $752,630 ‐ $3,344,976
Total Post-Implementation $31,079 ‐ $120,599 $147,912 ‐ $501,147 $1,479,117 ‐ $5,011,463
Total 2014 Costs Estimates $56,639 ‐ $226,105 $213,364 ‐ $824,735 $2,017,151 ‐ $8,018,364
Industry Confusion
Industry infighting
To move forward or not with ICD-10
Implementation date
History of delays
No one could discount the prospect of a delay happening
Difficult to plan with shifting goal dates
Lack of understanding
What ICD-10 is: annual update vs. new coding language
An “IT” project vs. something that requires education and affects all
business processes beyond just software systems
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Vendor Solutions
Vendor response to ICD-10 varied
ICD-10 enhancements separate from MU2
updates
Must know when vendor plans to release
updates.
• Be ready to install and test updates and
train staff
• Provides time to test externally.
• Likely provides improvements to revenue
and /or clinical work-flows.
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Provider Engagement
Problem: getting physicians
engaged
They are busy
They may not understand the
issue and their role
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Solution:
Remind physicians:
• Billing and reimbursement depend on accurate clinical
documentation
• ICD-10 requires more specificity.
• Clinical documentation is the critical first step and everything
downstream depends on it.
Steps to take to prepare for ICD-10 and
how to prioritize them
Question: Why start or continue now?
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Answer: Because it’s a chance to get better at
what we do today and prepare for ICD-10.
Consider
ICD-10 will eventually be necessary
Risky not to plan and begin or continue
Many steps assist other initiatives
Momentum is difficult to restart
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ICD-10 Implementation Steps
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Steps to ICD-10 Success
Have an organizational ICD-10 champion/coordinator.
Have a defined ICD-10 planning team that has a basic
understanding of ICD-10 to account for the scope
and breadth of the effort.
Understand physicians and office staff’s awareness
of and commitment to ICD-10.
Educate physicians and staff
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Steps to ICD-10 Success
IT (PMS/EMR, etc) and service vendor outreach
Vendors know about ICD-10?
Communicated update plans, timelines, costs?
Discussed required and enhanced capabilities and services?
Details to know and track for EACH VENDOR:
Updates and documentation availability
Contracts - what's included/not included, when, expiration date
Service level agreements?
Costs and when fees must be paid
training?
Contact information
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Why Update Technology Now?
Do PM system, EMR and other IT updates as they are
available so you can:
• Be an expert on the changes before ICD-10
• Maintain and improve productivity
• Participate in in-depth testing when it’s available
• Work out the kinks
• Work through internal clinical scenarios
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EMR templates can help keep your physicians’
productivity rates from slipping and ensure you
capture the necessary details for ICD-10, quality
and other programs your practices may be
participating in.
Steps to ICD-10 Success
Assess clinical documentation for necessary changes
to meet ICD-10’s specificity requirements.
How to start?
Determine most frequently used diagnosis codes by
provider.
Assess whether or not current documentation meets
ICD-10 specificity.
Hint: it very likely does not.
Educate and work with physicians
Start including these details now.
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Why Look At Documentation Now?
Documentation improvement:
Assists with compliance now and with ICD-10
Permits advance review of documentation and
coding for clinical and financial accuracy
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Work with physicians to phase in more
clinical details that ICD-10 requires
Benefit: these details can help ensure
accurate ICD-9 coding and
reimbursement
Steps to ICD-10 Success
Prepare a budget.
Account for pre and post transition costs
Consider obtaining a line of credit.
Documented ICD-10 education strategy for all staff
Education is not optional
Must understand:
Who needs to be trained and how/when will education take
place?
Who may need additional education
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© 2014 Navicure, Inc.
Steps to ICD-10 Success
Complete a diagnosis inventory
Document describes where, how and who uses diagnosis codes
Administrative and clinical
Front, middle and back office
Electronic and paper, e.g., Superbills, processes
Contracts, quality reporting, public health reporting, spreadsheets
Creators, senders and receivers
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Steps to ICD-10 Success
Create the ICD-10 Plan
Review/assess facts and information obtained
Create a list of things that need to be done to be in compliance
For each item identify:
who is responsible
estimated delivery date
interim deliverable and follow-up dates
dependencies
priority
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Why Start Now?
Have time for a thorough review of your
diagnosis discovery processes – may identify
places where improvements can be made prior to
ICD-10.
Lets staff become experts with process
changes and new IT solutions.
Improvements may help your costs and
improve revenue today.
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Steps to ICD-10 Success
Project Implementation and Monitoring
Do the things on your action plan
Measure and monitor that what you changed works
as expected.
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Steps to ICD-10 Success
Revenue cycle and clinical workflow updates
Improve staff productivity
Automate everywhere you can
Eligibility
Appeals
Review clinical work-flow
Queries, clinical clarification
EMR templates, etc
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Tools to include in your outreach
program (Important- new tools NOW, help NOW)
The ICD-10 implementation steps (hint: we just discussed them)
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ICD-10 Analyzer: Start Here
www.navicure.com/icd10analyzer
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ICD-10 Analyzer: Jump Start Your Transition
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ICD-10 Analyzer: Jump Start Your Transition
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Online Coding and Compliance Tools
Be more productive and accurate today.
Will be an expert when ICD-10 arrives.
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Denial Management Solution
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According to
CMS, in the early
stages of ICD-10,
denial rates will
increase by 100
to 200 percent
Use collaboration to share knowledge
and reduce costs
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Use Collaboration to Synergize Efforts
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Use Collaboration to Synergize Efforts
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Use Collaboration to Synergize Efforts
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Benefits of Collaboration
Revenue Cycle Solutions Can Help
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Will We Move Forward, or Not?
We now have more time
Will we do the same things and expect
different results?
Will we work together as an industry and
include everyone in the decision-making
process?
Will we make continuous improvement an
integral part of our day-to-day operations?
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Summary
ICD-10 is going to happen (eventually)
Your practices need to be prepared
They may need your help
Ken Bradley
VP of Strategic Planning
Navicure
Twitter: @Ken_Bradley
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