HealthDay News — Many practices 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 in Medical Economics.
The tax and audit firm KPMG conducted a survey at the end of a series of webcasts from Oct. 17 through Dec. 9, 2013. Respondents included both staff from health plans and healthcare providers at hospitals and group practices.
Survey responses indicated that 50% of participants have not yet estimated the new coding system’s impact on their cash flow. For those who did measure the impact, estimated losses ranged from $1 million to more than $15 million.
Less than half of respondents, 42%, said they had begun testing the new coding system. Additionally, 45% of participants said that denial/variance management would be most affected during the transition.
“As Oct. 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.