ICD-10 Timeline: Prepare for the financial impact with a budget

Carl Natale
by Carl Natale

The ICD-10 transition budget will help you assess how much ICD-10 implementation will cost. It's going to cover the resources needed for training, testing, compensating for decreased productivity and support implementation activities.

It focuses on four areas:

  • Coding
  • Revenue cycle
  • Project management
  • IT

Each area can require resources - time and money - to accomodate:

  • Software  and hardware
    • In house and vendor modifications
    • Upgrades
    • New software, systems and equipment
  • Education
    • Coder training
    • Clinician education
    • Awareness raising
  • Testing related costs
  • Staff time needed for:
    • Implementation planning
    • Training
    • Testing
    • Vendor management
  • Temp staffing to assist with extra work resulting from:
    • Decreased coding productivity
    • Billing backlogs
    • Claims denial and rejection management
    • IT work on upgrades and systems
    • Lost time during training
  • Consulting services
  • Forms and reports
    • Redesign
    • Printing costs
  • Data conversion
  • Dual coding
    • Added time
    • Maintaining data collection
    • Analyzing data

While figuring out these costs, assign them to the appropriate department budgets. Also calculate contingency costs for problems such as software that doesn't work as planned or staffing issues. Also plan these costs across more than just the next two years. You will need more staffing to deal with productivity, claims management and software upgrades after Oct. 1, 2014.

The goal is to have this completed by May 1, 2013.