News | January 25, 2012

Innovative McKesson Service Prepares Hospitals For ICD-10

As 2013 deadline looms, hospitals recognize need for comprehensive, organization-wide change

With the transition to ICD-10 medical coding requirements expected to take effect in less than two years, providers face a mountain of change in virtually every corner of their organizations. To help them prepare, McKesson recently announced a unique ICD-10 Transition Service that takes a three-step approach to help organizations move to the new coding system regardless of their information systems vendor. The service starts with a readiness assessment, to compare the provider's current technology, processes and operations to what is needed under ICD-10. Based on this analysis, a customized roadmap is developed.

McKesson continues to provide support throughout the ICD-10 transition to ensure that new systems and services are deployed to meet the requirements. Training also is offered to help clinicians learn to document procedures with the level of specificity needed under the new mandate.

Winter Haven Hospital in Winter Haven, Fla., is one of nine hospitals already using McKesson's ICD-10 Transition Service to prepare. "The move to ICD-10 is a hospital-wide project that has a major impact on everyone in the organization, from physicians to health information management staff to medical records staff," said Pat Mongoven, director of technology, Winter Haven Hospital. "McKesson has the expertise and resources to help ensure that we are equipped to successfully address the challenge."

"Our preliminary analysis of customer sites indicates that transitioning to ICD-10 could affect as many as 63% of a hospital's claims, 45% of medical records and more than 50% of payer contracts," said Wanda Hudson, vice president, Revenue Cycle Services, McKesson. "McKesson's service offering is uniquely designed to smooth this transition and reduce the potential for loss in revenues."

Hospitals that have not begun preparing for the switch to ICD-10 will need to make significant changes to their health IT systems wherever there is a diagnosis or procedure code entered, processed or transacted – a considerable task as these codes traverse a variety of systems for a number of purposes. Payer contracts, many of which tied reimbursement to ICD-9 codes, will have to be re-negotiated to link payments to ICD-10 codes. In addition, extensive training will be needed across the enterprise – from admissions, billing and claims to eligibility checking and quality reporting. A recent KLAS report showed that less than 10% of providers are halfway through their ICD-10 compliance work.1

"With such comprehensive change required, organizations must take action quickly to avoid losing substantial revenue when the federal government and other payers stop acknowledging ICD-9 codes in 2013," added Hudson. "The transition to ICD-10 requires a holistic approach. We are pleased that our new service is resonating with providers and meeting a critical need in the market."

For more information, visit http://sites.mckesson.com/reinventthebusinessofcare/icd10transition.asp, or the McKesson booth at HIMSS, #2545.

About Winter Haven Hospital
Established in 1926, Winter Haven Hospital serves as the major medical center for east Polk and Highlands counties and the U.S. Highway 27 / Ridge Corridor. The 527-bed hospital is a locally owned and operated not-for-profit organization. The hospital is fully accredited by the Joint Commission and has more than 300 board-certified physicians on its medical staff representing every major specialty. Affiliated with the University of Florida College of Medicine/Shands Healthcare, Winter Haven Hospital also is the home of Bostick Heart Center, the Cassidy Cancer Center, the Regency Center for Women and Infants, the Center for Urology and the Robotics Institute, a nationally accredited Stroke Center and the nationally accredited Joy-Fuller Rehab Center. For more information, visit www.winterhavenhospital.org.

About McKesson
McKesson Corporation, currently ranked 15th on the FORTUNE 500, is a healthcare services and information technology company dedicated to making the business of healthcare run better. We partner with payers, hospitals, physician offices, pharmacies, pharmaceutical companies and others across the spectrum of care to build healthier organizations that deliver better care to patients in every setting. McKesson helps its customers improve their financial, operational, and clinical performance with solutions that include pharmaceutical and medical-surgical supply management, healthcare information technology, and business and clinical services. For more information, visit http://www.mckesson.com.

1 KLAS ICD-10: Preparing for October 2013 report; September 2011, www.KLASresearch.com, © 2012 KLAS Enterprises, LLC. All rights reserved.

SOURCE: McKesson Corporation

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