Computing The Icd-10 Revenue Impact

By Author: jvionhealth health
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Even as the Oct. 1, 2013 deadline is still about a year away for health and medical service providers to convert their reporting mechanism and in-patient procedures to the new requirements, everybody is already bracing for the impact of the ICD-10 revenue cycle. There’s no easy way around the expenses it’s going to cost you when you comply with the new rules.

Grim statistics

The Oct. 1, 2013 deadline can be viewed two ways: there’s still time to focus on the priorities as well as the daily operations of the hospital; or it’s time to panic as the due date is fast approaching and the hospital has not yet finished with step 1 of the a very long process. In terms of the ICD-10 revenue impact, the Medical Group Management Association revealed that each doctor will have to shell out from $27,000-$29.000 to convert to the new regulations.

According to the HealthLeaders Media Intelligence Report published in July 2011, nearly 50% of heathcare facilities expect a loss of revenue in implementing the OCD-10. Another 53% of respondents surveyed in the report claimed that they don’t expect to recover their ...
... expenses in ICD-10 conversion.

Will it result to long-term savings at least? Not according to the 6 in 10 healthcare leaders surveyed, it won’t. In fact, they claim that it will increase their labor cost and cash flow.

Silver lining

Most of the healthcare facilities believe, however, that the quality of service will improve because of ICD-10. Over 5 in 10 of those surveyed believe that ICD-10 will boost evidence-based medicine while more than 7 in 10 believe it will help improve their organization overall. The Department of Health and Human Services anticipates that the conversion, regardless of the ICD-10 revenue impact , will help single out billing frauds, result to a clearer and more stringent reporting process by hospitals, clinics and doctors, and improve patient care.

Are you really ready?

Those who have converted to the new requirements warned that the initial estimates by healthcare providers for the cost of conversion to the new system are always miscalculated. For instance, if you estimate that you are going to spend $750,000 for the conversion, add a spread of at least 10% to the overall ICD-10 revenue cycle . But there are technological solutions that can help you make a risk assessment including the impact in revenue, determining the backfill resources, and mitigating the financial risks. Why wait? Visit us to know more about our icd 10 revenue impact and financial simulation.