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1 ADVANCE for Executive Insight

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evenue cycle management<br />

The Not-So-Soft<br />

‘Soft’ Impacts<br />

of ICD-10<br />

The time to baseline processes is now.<br />

By Patrick McNeese<br />

Now that the decision on the ICD-10 compliance date has<br />

been announced, it’s a good time to take a step back from<br />

mapping, translating and evaluating codes and look at some<br />

of the so-called “soft” impacts associated with the ICD-10 trans<strong>for</strong>mation.<br />

Prepare <strong>for</strong> Productivity Loss<br />

Loss of productivity <strong>for</strong> virtually everyone engaged in using the<br />

new code sets is viewed as one of the “soft” impacts that may be<br />

difficult to measure empirically, but will undoubtedly translate into<br />

significant financial shortfalls <strong>for</strong> many organizations.<br />

In 1999, Australia transited to ICD-10 and experienced a<br />

productivity loss higher than 25 percent that did not return to<br />

pre-transition levels <strong>for</strong> more than a year. Canada experienced<br />

increased productivity losses following their transition in 2004<br />

and never returned to pre-transition levels. I am not a seer or<br />

an expert but the general consensus is that the U.S healthcare<br />

space will experience similar productivity losses exacerbated by<br />

being the first nation to incorporate ICD-10 into reimbursement<br />

methodologies.<br />

An overall loss of more than 25 percent that extends beyond a<br />

year does not sound “soft” to me at all; rather it appears as be a proverbial<br />

ICD-10 “elephant in the room” that needs to be addressed.<br />

Organizations should be baselining processes now. ICD-10 impacts<br />

may be completed and the productivity warnings issued.<br />

Understand the operational areas where productivity may be most<br />

impacted and measure current productivity levels. How long does<br />

it take <strong>for</strong> an experienced coder to complete a claim submission<br />

on a simple procedure? How long <strong>for</strong> an inpatient stay?<br />

Remember that the simplest claim submission under ICD-<br />

10 looks like a medium complexity submissions in ICD-9. As<br />

painful as it is to think about that, there will be<br />

more than 300 ways to code a diabetes claim.<br />

How long does it take <strong>for</strong> a talented claims examiner<br />

to evaluate a simple suspended claim?<br />

Patrick McNeese is business solution manager and<br />

ICD-10 practice lead, DST Health Solutions LLC.<br />

38 <strong>ADVANCE</strong> <strong>for</strong> <strong>Executive</strong> <strong>Insight</strong>

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