ICD-10 implementation: How much is this going to cost?

By now, the introduction of ICD-10 is old news, yet the concern over its adoption remains. Now slated for an October 1st, 2015 implementation date, medical providers and coders have been given more time to work towards a smoother, cost-saving transition. As we mentioned previously, the implementation of ICD-10 will be costly, and will require proactive steps to reduce error, steps many facilities have not yet undertaken.

ICD-10 implementation and training figures
A 2014 Nachimson Advisors report estimated implementation costs for ICD-10:
•Small Practice: $56,639 – $226,105
•Medium Practice: $213,364 – $824,735
•Large Practice: $2,017,151 – $8,018,364

Are the reasons behind such high percentages of hospitals not embracing ICD-10 training rooted in the costs associated with it? Of total profit, which category is most affected by their respected training fees? Getting ahead of the curve would prove difficult if a facility did not have the financial support necessary to train staff members.

In a prepared statement, AMA President Ardis Dee Hoven noted “Continuing to compel physicians to adopt this new coding structure threatens to disrupt innovations by diverting resources away from areas that are expected to help lower costs and improve the quality of care”. Are the projected savings promised from ICD-10 greater than what some practices are already doing? If not, this would explain the reluctance by many to embrace ICD-10. Currently, the 34 year old ICD-9 coding system totals approximately 13,000 distinct codes, while ICD-10 totals over 68,000.


Sources:
http://www.healthcarefinancenews.com/news/icd-10-transition-costs-could-triple-physician-practices
http://www.healthcareitnews.com/news/hospitals-remain-ill-prepared-icd-10

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