ICD-10 Transition May Impact Practice Cash Flow
(HealthDay News) — Physicians and health plans remain unprepared for the disruption that implementation of the International Classification of Diseases, 10th Revision (ICD-10) will bring to their cash flow, according to an article published January 14 in Medical Economics.
According to the article, the tax and audit firm KPMG conducted a survey at the end of a series of webcasts from October 17–December 9, 2013. Respondents included both staff from health plans and health care providers at hospitals and group practices.
The article notes that, according to the results of the survey, 50% of respondents have not yet estimated the new coding system's impact on their cash flow. For those who did measure the impact, the estimates ranged from $1 million to more than $15 million. Additionally, 45% of participants said that denial/variance management would be most affected during the transition. Coding systems have begun being tested by 42% of the respondents.
"As October 1 inches closer, health care organizations have their work cut out to properly absorb the impact that the new coding will have on their businesses," said Wayne Cafran, an advisory principal in KPMG's Healthcare & Life Sciences practice, according to the Medical Economics article.