ICD-10, the new, complex and expansive international healthcare coding system, goes into effect in less than two years. Denise and June shared with the audience of approximately 300 viewing the HIMSS telecast that organizations should now be engaged in staff training, budget and cash reserve preparation, and documentation improvement compliance efforts to meet the October. 1, 2013, deadline.
CMS estimates that ICD-10 conversion costs could total $640 million in 2013, but Denise and June offered real-world numbers for providers:
-Conversion costs alone for healthcare centers with more than 400 beds will range from $1.5 to $5 million
-100 to 400-bed hospitals will pay $500,000 to $1.5 million
-100- or fewer bed facilities can expect costs to range from $100,000 to $250,000
Denise and June also shared with HIMSS viewers that CMS and the American Health Information Management Association expect denial rates will increase 100 to 200 percent during the first two years of ICD-10 implementation. Claim error rates are expected to increase to 6 -10 percent from the current average rate of 3 percent.