- As the ICD-10 countdown clock continues to tick, Navicure partnered with Porter Research to conduct a survey regarding healthcare organization readiness. As a follow-up to another survey conducted in January of this year, Navicure found that an increased number of organizations feel confident and prepared going into the transition.
However, while the survey reports that 43 percent of respondents have begun preparations and are on track for ICD-10 implementation, there is still a wide range of preparedness levels amongst the remaining 57 percent. Six percent of organizations report not having started the preparation process, while 20 percent have started but do not feel on track for the transition. However, as of January only 21 percent of respondents had begun preparations for ICD-10, and 30 percent had started but paused due to the extended October 1 deadline.
Despite those mixed results, 85 percent of respondents are still confident that they will be prepared by the October 1 deadline date. Of that 85 percent, 22 percent feel “very confident,” 21 percent are “confident,” and 42 percent are “somewhat confident.” That is a two percent increase from the January 2015 survey.
The survey also reports findings regarding organizations’ largest concerns facing the ICD-10 implementation. An overwhelming majority of 56 percent of respondents reported being most concerned with revenue cycle and financial implications of ICD-10. This mirrors the 59 percent of respondents that were concerned with the same issue. In addition to revenue cycle concerns, 17 percent of organizations are also concerned about the impact ICD-10 will have on staff productivity.
These revenue cycle concerns center around a large concern for claims denials. The survey found that 94 percent of respondents anticipate an increase in their claims denials following ICD-10 implementation. A majority (32 percent) anticipate denials to increase by 11-20 percent, and 29 percent anticipate they will increase by 21-40 percent.
Despite these considerable concerns, the survey found that nearly 35 percent of respondents have not taken any measures to adjust their revenue cycles to account for potential negative effects. Measures that other hospitals have taken include improving patient collections (34 percent), improving denial management processes (30 percent), testing early with payers (19 percent), and improving patient price estimation (17 percent). Additionally, 49 percent of respondents had completed or planned on completing an end-to-end testing period with the Centers for Medicare & Medicaid (CMS).
Organizations have several other concerns when facing ICD-10, according to the survey. Nearly 31 percent of respondents anticipate challenges with clinical documentation and reporting upon implementation, while 27 percent anticipate a lack of preparedness from payers, which would result in a lack of payment for organizations.
CMS has stated that it will not deny codes that are not specific enough for a certain case for up to one year following implementation. However, the survey finds that a vast majority (74 percent) of organizations will still be attempting to use as accurate of codes as possible. Only 3 percent of respondents plan on taking advantage of this policy.
As the October ICD-10 deadline date looms closer, Navicure suggests organizations continue to test their preparedness for the transition. This not only includes testing knowledge of the code sets, but ensuring plans are enacted to maintain revenue flow.