ICD-10 is fast approaching! Is your medical practice financially prepared?

Preparing for ICD-10 Costs with an Implementation Plan and Business Loan

The official ICD-10 implementation date, as determined by the U.S. Department of Health and Human Services (HHS), is set for October 1st*.
As a medical practice owner, it is critical that you have a plan and secure capital to cover ICD-10 costs associated with increased documentation requirements, revised forms, required retraining of staff and physicians, as well as mandatory changes to information technology, software and electronic transaction standards.

During the ICD-10 transition period, denials and delays in reimbursement of Medicare and Medicaid are also expected to increase, which could interrupt your practice’s revenue stream and cash flow. As a result, physicians, dentists and medical practitioners are expected to require capital for:

  • Managing accounts receivable
  • Potential threats to cash flow
  • Potential revenue loss
  • Denials due to ICD-10 requirements

ICD-10 Costs: Do you have the capital to cover ICD-10 implementation and financial impacts?

Fulfilling these ICD-10 and HIPAA (5010)* requirements will undoubtedly come with costly ramifications for medical practices. According to AAOS, cost impact could range from $83,000 to $2.7 million per practice and will likely present long-term cash flow threats. These projections take in to consideration the costs of employee training, increased documentation, and changes to superbills, health plan contracts, coverage determinations and information technology systems, as well as possible cash flow disruption.

Develop a financial plan that aligns with your ICD-10 implementation plan.

  1. Identify your practice’s current monthly budget.
  2. Estimate and secure a projected budget for at least 3 months to cover ICD-10 transition costs as well as a subsequent plan in for impacts lasting longer than those 3 months.
  3. Determine funding options in the event of payment and reimbursement delays, denials, technical issues, or revenue loss/cash-flow impact.

The costs related to ICD-10 implementation may seem overwhelming. Fundation can help with a low cost business loan.

October 1st will be here before you know it. Don’t wait any longer to start your practice’s ICD-10 implementation. To ensure that your medical practice is on track both operationally and financially to make the transition, download our full ICD-10 implementation plan checklist and contact Fundation today.

* It’s extremely important to keep in mind that the ICD-10 guidelines also require the implementation of the newest version of the nine Health Insurance Portability and Accountability Act (HIPAA) electronic standards. The new HIPAA electronic standards (5010) must be implemented before transitioning to the new ICD-10 code, as the ICD-10 code cannot operate with the current HIPAA transaction standards (4010).