ICD-10 Conversion Costs For Smaller Practices Less Than Anticipated
By Christine Kern, contributing writer
Current evidence shows initial ICD-10 conversion estimates were exaggerated and efficient progress is now being made.
The ICD-10 data controversy continues as new research suggests the initial estimates of the financial and labor costs associated with the ICD-10 transition in physician offices has been exaggerated, according to research published by the Journal of AHIMA. The data also reveals considerable progress has already been accomplished by physicians, vendors, and health plans on ICD-10 implementation with fewer resources than previously estimated.
The article estimates ICD-10 conversion for a small practice costs between $1,900 and $5,900 – a stark contrast to the range posited by a 2014 update of a widely referenced 2008 report by Nachimson Advisors to the American Medical Association (AMA), according to Healthcare Informatics.
“There are a number of reasons why the cost estimates reported in this article are lower,” the study authors explain. “The costs related to EHR adoption and other healthcare initiatives, like meaningful use are not directly related to the ICD-10 conversion although these costs were sometimes included in ICD-10 conversion cost estimates. The coding industry is much more knowledgeable and ready for ICD-10 now than previously reported. Furthermore, the activities necessary to be ready for ICD-10 have become available at very low cost.”
The latest estimates are based on results from recent surveys, published reports, and ICD-10 conversion experience with hospitals and physicians. In the study, a small practice is defined as three physicians and two impacted staff members such as coders and/or office personnel. Cost estimates typically include figures for training, software upgrades, super bill conversion, end-to-end testing, and productivity.
“This research confirms that the ICD-10 conversion for small practices is not only highly achievable but far less onerous than many have suggested,” AHIMA CEO Lynne Thomas Gordon said in a statement. “AHIMA remains committed to helping small practices with their transition to ICD-10, a modern and robust coding system that will lead to improved patient care and better health outcomes at reduced costs.”
“Since the new estimates of the costs for ICD-10 preparation are much lower than originally estimated, the barriers to ICD- 10 implementation are much less than originally projected,” the authors conclude.
This new data is in direct contrast to the message being touted by the AMA and other groups, which argues that the ICD-10 conversion process places undue financial burdens on many practices. An AMA press release from earlier this year reported estimated costs are nearly triple what had been predicted by a 2008 study, also produced by Nachimson Advisors. In 2008, the predicted costs for implementation of approximately$83,290 for a small practice, the 2014 study found costs for small practices falling between $56,639 and $226,105.