ICD-10: Revenue Losses Loom
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However, while competing priorities may be taking focus away from beginning the implementation process, both Oriol and Boynton agree organizations need to have the discovery/assessment process under way.
Of those respondents who have begun the assessments, nearly 73% have completed the system/vendor readiness portion, while 64% have completed their training assessment, 57% have completed their documentation gap analysis, and 48% have completed the financial
Oriol notes that without the assessment, organizations cannot budget accordingly. “The cost is higher than they may think. We did our financial assessment and now we’re discovering that it’s double what we estimated,” he says.
Oriol says his organization, the largest children’s hospital in California with 442 licensed beds, initially set aside monies to complete the ICD-10 transition, but now they anticipate doubling their initial estimate to become ICD-10 ready. Interestingly, the survey suggests that many in healthcare may be underestimating the cost of completing this process. Twenty percent of respondents estimate the cost to be less than $500,000 to cover labor, hardware, software, training, consultants, and other costs to become ICD-10 ready by 2013. Only 4% of respondents felt it would cost more than $5 million, 18% are not sure, and a full 38% had still not done an ICD-10 financial assessment.
“This is going to affect so many areas, from technology systems to the back office and cost accounting systems,” says Boynton.
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