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© 2015 Axxess. Unauthorized use is prohibited.
Axxess Leads the Industry
Our Mission is to empower healthcare organizations with the world’s best technology solutions
© 2015 Axxess. Unauthorized use is prohibited.
Your Certified, Experienced Presenter
Empowering You with the Knowledge to Grow Your Business We Learn. We Teach. We Grow.
Jennifer Gibson is a Registered Nurse with over 20 years of home health industry
experience. She is a certified OASIS and Coding Specialist. She regularly trains on
ICD-9 and ICD-10 coding. She has held several leadership roles in the
administration of home health agencies and as a Director of Nursing. Jennifer
consults widely for home health agencies nationwide and is a sought after
contributor to industry blogs and publications.
Jennifer is committed to the success of the home care industry and currently
serves on several committees for the National Alliance for Home Health Quality
and Innovation (AHHQI) as well as the Texas Association for Home Care &
Hospice. Jennifer has the heart of a teacher, and her passion is to support others in
the home care industry.
Jennifer Gibson, RN, HCS-D ICD-9, HCS-D ICD-10, COS-C
© 2015 Axxess. Unauthorized use is prohibited.
Introduction
4
• 2013
– CMS’s 2013 final rule indicated that ICD-10-CM implementation will proceed
beginning October 1, 2014
– CMS stated that there would be NO further delays*
• 2014
– Protecting Access to Medicare Act (PAMA) Passed: April 1, 2014 • ICD-10-CM Postponed
• 2015
– ICD-10 Implementation date October 1, 2015
– No further delays are anticipated
*CMS’s MLN Webinar 08/22/2013
Preparation and training is the key to successful implementation
© 2015 Axxess. Unauthorized use is prohibited.
Objectives
• To learn WHY implementation of ICD-10-CM is occurring
• To learn HOW it will effect us
• To learn the differences between ICD-9-CM and ICD-10-CM
• To learn about expected issues of implementation
• To learn what we can do to minimize the effects of
implementation
5
© 2015 Axxess. Unauthorized use is prohibited.
Why ICD-10-CM?
• ICD-9-CM is Outdated
– First used in the US in 1979 on all Medicare claims
– Terminology is outdated
– Does not include new technology
– Many categories in ICD-9-CM are full
• There is no more space to add codes for new diseases and procedures
– No laterality (side of body affected)
6
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ICD-9-CM Compared to ICD-10-CM
7
ICD-10-CM is MUCH more specific
ICD-9-CM
•14,315 diagnosis codes •No Laterality (side of body) •Procedure Coding Required
-3,838 Procedure Codes
•69,099 diagnosis codes •Includes Laterality (side of body) •Procedure Coding NOT Required
- 75,795 Procedure Codes
ICD-10-CM
© 2015 Axxess. Unauthorized use is prohibited.
ICD-10-CM Goals
8
Enhance accurate
payment for services
rendered
Facilitate evaluation of
medical processes
and outcomes
Incorporate emerging diagnosis
and procedures
Identify diagnoses
and procedures
precisely
Assist in tracking
public health and risks
Recognize advances in
medical technology and allow room to
add these codes
© 2015 Axxess. Unauthorized use is prohibited.
What you need to know: ICD-10-CM
9
• Agencies will be maintaining two coding systems for a period of time – up to 14 months
• CPT codes and HCPCS codes will not be affected
• ICD-10-CM codes will be used for all providers who use ICD-9-CM
Start
October 1, 2015
© 2015 Axxess. Unauthorized use is prohibited.
ICD Comparison
10
ICD-9-CM codes ICD-10-CM codes
3-5 characters in length 3-7 characters in length
First character can be numeric or alpha (V or E codes)
First character is alpha (all letters except U)
Characters 2-5 are NUMERIC Character 2 is NUMERIC; Character 3-7 may be ALPHA or NUMERIC
Use of decimal required after 3 characters
Use of decimal required after 3 characters
No Placeholders Use of dummy placeholder ‘X’
Alpha characters are case sensitive (matters on bill in ICD-9)
Alpha characters are NOT case sensitive
Incomplete code titles Complete code titles
14, 315 diagnosis codes 69,099 diagnosis
3,838 procedure codes 71,957 procedure codes
No Laterality (side of body) Laterality
Injuries grouped by type Injuries grouped by anatomical site
© 2015 Axxess. Unauthorized use is prohibited.
ICD-10-PCS & OASIS
11
Information on MO1012 was no longer used to calculate risk adjustment or outcomes
• M1012 is the OASIS-C question that used codes for inpatient procedures
Agencies were required to answer this M question, but could mark ‘N/A,’ ‘Unknown’,
or list a procedure
We do NOT use procedure codes in OASIS –C1; therefore, we do not use ICD-10-PCS (procedure codes)
© 2015 Axxess. Unauthorized use is prohibited.
More Combination Codes in ICD-10
12
I25.110
Atherosclerotic heart disease of native coronary
vessel with unstable angina
pectoris
E11.311 Type 2 diabetes
mellitus with unspecified
diabetic retinopathy
with macular edema
K71.51 Toxic liver disease with chronic
active hepatitis with ascites
K50.012 Chron’s disease of small intestine with
intestinal obstruction
EXAMPLES
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ICD-10-CM 7th Character
13
• ICD-10-CM has a 7th character feature for some codes
• If 7th character is required and is not added, the code is invalid
• 7th character helps to indicate which encounter is being treated
– Initial treatment (ER or hospital, usually)
– Subsequent treatment (most often for home care)
– Sequela (complication arising from a condition such as contractures due to burns)
– Special 7th character classifications for fractures
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Placeholder ‘X’
• Dummy Placeholder ‘X’ is used in certain codes – X Allows for future expansion
– Fill out empty characters when a code contains fewer than 6 characters and requires a 7th character
• When placeholder character applies, it MUST BE USED in order for the code to be valid
• ‘X’ is not case sensitive – EX: T46.1x5A or T46.1X5A (adverse effect of calcium-channel blockers, initial
encounter)
– T15.02xD or T15.02XD (foreign body in cornea, left eye, subsequent encounter)
14
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More Specific
15
ICD-10-CM: S72.044G Non-displaced fracture of base of neck of right femur, subsequent encounter
for closed fracture with delayed healing
•ICD-9-CM: V54.9 Unspecified Orthopedic Aftercare
•With M1024b buddy code of 820.03 Fracture of neck of femur, base of neck
© 2015 Axxess. Unauthorized use is prohibited.
More Specific
16
ICD-10-CM: I69.351
Hemiplegia and hemiparesis following cerebral infarction affecting right dominant side
•ICD-9-CM: 438.21 Hemiplegia/Hemiparesis affecting dominant side (this is a late effect code, but as you can see is very non-specific)
© 2015 Axxess. Unauthorized use is prohibited.
HIPAA 5010
17
• HIPAA 5010 was created in anticipation of ICD-10-CM
– Increased the field size for characters from 5 to 7 characters on the bill
– Increased the number of diagnosis codes allowed from 9 to 25
– MACs will see up to 25 codes
– Clarifies why home care is being provided
© 2015 Axxess. Unauthorized use is prohibited.
Industry Readiness
18
80%+ No designated transition team
75%+ believe ICD-10
compliance date will be delayed again*
75%+ believe their agency
will be ready for October 1, 2015
changes
*Source: Decision Health
CMS webinar 8/22/13 stated NO FURTHER DELAYS
© 2015 Axxess. Unauthorized use is prohibited.
Home Health Coders
19
44%
single coder
25%
2 person team
31%
3+ person team
Do your coders also QA the OASIS forms?
•Coders are a mix of clinical and
non-clinical staff
•Some agencies outsource coding
responsibilities
© 2015 Axxess. Unauthorized use is prohibited.
ICD-9-CM Productivity
• Coders who ONLY assign codes
– 25 assessments daily
• Coders who assign codes AND QA OASIS
– 15 assessments daily
• Internal quarterly audit results
– 90% > accuracy rating
20
© 2015 Axxess. Unauthorized use is prohibited.
ICD-10-CM Coder Productivity
1st 12 Months of Implementation
70% longer to code claims
21 *Data collected from Canadian implementation
54%
decrease in
productivity
20%
decrease in
productivity
Long- term (after 12 mos.)
Maintain a 90% > accuracy
rating when audited
© 2015 Axxess. Unauthorized use is prohibited.
Productivity Comparison
22
ICD-9 Current ICD-10 First 12 Months ICD-10 Long Term
CODING: CODING: CODING:
25 assessments daily 11.5 assessments daily
20 assessments daily
Coding and OASIS Review: Coding and OASIS Review: Coding and OASIS Review:
15 assessments daily 6.9 assessments daily 12 assessments daily
Internal Audit Review: Internal Audit Review: Internal Audit Review:
90% > accuracy rating 90% > accuracy rating 90% > accuracy rating
© 2015 Axxess. Unauthorized use is prohibited.
Coding Specialist Training
23
• CMS calculations for FULL TIME CODING SPECIALISTS
training (not agency staff overall such as senior management,
accounting, QA staff and clinicians)
– CMS estimated Cost: $644 per coder
– Canadian data reports 50+ hours to train
Coders Training Hours
Coding Specialists 16 Hours
Gap Knowledge Deficit 8 Additional Hours
Total 24 Hours
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Anticipated Issues
24
Implementation will increase coding errors resulting in rejected claims
Medicare EXPECTS a spike in rejection of claims 3-6 months following introduction of code set,
peaking at 10% of all claims submitted
Productivity will be directly affected (decreased) because of knowledge deficit with new codes and definitions
© 2015 Axxess. Unauthorized use is prohibited.
Top 10 Anticipated Issues
25
1. Coding clinic guidance for ICD-9-CM will not translate over to ICD-10
2. Will have to ‘unlearn’ rules for ICD-9 and learn new rules for ICD-10
3. $9.77 million loss in coder productivity*
4. Overall transition cost from ICD-9 to ICD-10 of $16.58 million**
5. Increased delay processing OASIS/Coding
6. Increase delay processing claims
7. Increased rejections and denials
8. Improper payment
9. Coding backlog
10.Decreased cash flow
*CMS estimate In 2015, if each assessment takes 1.7 more minutes to complete
**CMS estimate for home health industry
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Documentation Requirements
26
Referral sources
Hospitals
Physicians
Home health
clinicians
ICD-10-CM is much more specific. Accurate and thorough documentation required
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Clinician Training
27
• Start Training a Minimum of 6 months prior to implementation date
– No later than April 1, 2015
• Tools available
– Initial assessment audits
– E-learning
– Practice tools
– Webinars, discussion forums
– Classroom education
• Canadian data shows
– 30 hours training plus 8 hours of knowledge gap training
Start Training Now
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Agency Transition
• Agencies will not bill claims with services provided ON or After
October 1, 2015 with ICD-9-CM
• Agencies will have to access both ICD-9 and ICD-10 to submit or
revise any claims associated with services actually provided on or
before September 30, 2015
• M0090 will be the determining factor
28
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Home Health Agency Billing
29
• MACs to “allow HHAs to use the payment group code derived from ICD-9 codes on RAPs for episodes that span October 1, 2015, but require EOE claims to be submitted using ICD-10 codes”
• Part B claims that are billed on a monthly basis will split claims based on dates of service and use ICD-9 before October 1, 2015
– Examples:
• Hospice/Home Health billing
• Outpatient therapy/Outpatient billing
• Most of OUR clients will be billing traditional Medicare clients under part A and therefore will be billing episodes that begin before October 1, 2015 and end after October 1, 2015 as follows – RAP for episode started before October 1, 2015 bill using ICD-9-CM
– EOE for episode starting before October 1, 2015 and ending after 10/01/2015 using ICD-10-CM
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Home Health Agency Billing
30
• Most of OUR clients will be billing traditional Medicare clients under part A and therefore will be billing episodes that begin before October 1, 2015 and end after October 1, 2015 as follows
– RAP for episode started before 10/01/2015-bill using ICD-9-CM
– EOE for episode starting before October 1, 2015 and ending after October 1, 2015 using ICD-10-CM
© 2015 Axxess. Unauthorized use is prohibited.
Agency Steps to Success
• Evaluate financial resources
– 3-6 month productivity lag and claim payment delay
• Consider establishing a line of credit to proactively deal with potential cash flow interruptions
• Assess clinician knowledge deficits and role in coding
• Analyze documentation NOW on top 25 diagnoses for the agency
• Monitor Vendor Readiness – Software
– External coders
– External billers or clearing houses
– Payers
31
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Steps To Take Today
32
Establish a transition team NOW
Develop an educational plan and timeline
Train clinicians, coders, management, QAPI and Clinical Supervisors on ICD-10-CM as well as anatomy and physiology
Reinforce ICD-9-CM coding fundamentals, OASIS completion guidelines, and documentation standards NOW to get staff accustomed to the level of documentation ICD-10-CM will require
Begin ‘Dual Coding’ a sample of patients (code in ICD-9 and ICD-10)
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More Steps To Take Today
33
• CMS recommends dual coding beginning January - March 2015 and continue until full implementation in October 2015
– Consider manually coding and progress to testing within informational system by April 2015
• Assess accuracy of coding – HCS-D certified in ICD-10 coding reviews
– Internal audits
– External auditor review of portion of records to verify accuracy and completeness of coding
– Look for consistency between OASIS, Plan of Care, claim and documentation of the record
© 2015 Axxess. Unauthorized use is prohibited.
Are Agencies Ready?
34
Z56.1 Change of Job
Z56.3 Stressful Work Schedule
Z56.5 Uncongenial Work Environment
Z56.4 Discord with Boss and Workmates
Z71.89 Other Specified Counseling
Z56.0 Unemployment, Unspecified
T73.2xxD Exhaustion due to exposure
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Is Support Ready??
35
R45.0 Nervousness
R45.82 Worries
R45.2 Unhappiness
R45.5 Hostility
R46.7 Verbosity and circumstantial detail obscuring reason for contact
W17.2 Fall into hole
Q17.4 Misplaced ear
Z46.5 Malingerer
F10.10 Alcohol abuse
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Questions & Answers
36
http://www.axxess.com/icd-10
Decision Health: www.decisionhealth.com
https://www.optumcoding.com/
© 2015 Axxess. Unauthorized use is prohibited.
Empowering You with the Knowledge to Grow Your Business
Thank You for Attending
Jennifer Gibson, RN, HCS-D ICD-9, HCS-D ICD-10, COS-C
214-575-7711, extension 3917