News Feature | February 14, 2014

ICD-10 More Costly Than Thought

Source: Health IT Outcomes
Katie Wike

By Katie Wike, contributing writer

ICD-10 implementation costlier than originally thought, could cost large practices us much as $8 million

With the majority of providers already falling behind in the race to transition to ICD-10 in October, the last thing that was needed was bad news. Adding insult to injury, the American Medical Association delivered that bad news, releasing research showing the implementation bill will be steep.

Fierce Health IT sums up the AMA research, noting the cost for ICD-10 implementation will be:

  • $56,639 - $226,000+ for small practices
  • $213,364 - $824,735+ for medium practices
  • $2 to $8 million+ for large practices

In 2008, the predicted cost for a small practice to implement ICD-10 was $83,290 and did not include costs to update EHRs because Meaningful Use was not yet enacted.

"These figures indicate that physician practices face significant costs with ICD-10 implementation, and especially the risk of payment disruptions," the report's authors say. "A poorly executed ICD-10 implementation effort will increase those risks and expose practices to large costs in 2014 and beyond."

In a letter urging CMS to reconsider the October ICD-10 deadline, the AMA writes, “Many practicing physicians regard ICD-10 as a costly, unfunded mandate that will not improve patient care. Indeed, the cost to meet ICD-10 is much larger than originally estimated.”

“Adopting ICD-10, while it may provide benefits to others in the healthcare system, is unlikely to improve the care physicians provide their patients and takes valuable resources away from implementing delivery reforms and health information technology. The AMA strongly urges CMS to reconsider the ICD-10 mandate.”

Researchers concluded at the end of their cost study, “These figures indicate that physician practices face significant costs with ICD‐10 implementation, and especially the risk of payment disruptions. A poorly executed ICD‐10 implementation effort will increase those risks and expose practices to large costs in 2014 and beyond. Planning must take place now so those risks can be mitigated and practices can continue to operate effectively.”