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Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

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Page 1: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Copyright Gap Consulting, Inc. 2011

A Practical Guide to Navigating the ICD-10 Waters

Northeast Ohio HFMAJuly 28, 2011

1

Page 2: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Agenda

• Introductions• The Visible Clinical Aspects of ICD-10• ICD-10 Imperative and Call to Action • Impact of ICD-10 Among Stakeholders• Summary• Q&A

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Page 3: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

The Speakers

• Nabil Chehade, MD, MSBS, CPCAssistant Medical Director, Medical SpecialtiesChief Medical Informatics OfficerOhio Permanente Medical Group

• Lynn Eckendorf, MBA, CCPSenior Associate

Gap Consulting

• Gail Kovacs, RN, MBA,CLNCHealthcare Business AdvisorKovacs and Associates

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Page 4: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

The Visible Clinical Aspects of ICD-10

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Page 5: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Overview of Kaiser Permanente

• Founded 1945• Serves > 8.7 Million Members• 8 Regions Across the United States:

– Colorado,

– Georgia,

– Hawaii,

– Mid-Atlantic States (VA, MD, DC),

– Northern California,

– Northwest (Oregon/Washington),

– Ohio and

– Southern California

• 35 Hospitals• 454 Medical Offices,• 15,129 Physicians,• 64,098 Employees• Total Revenue for 2010 = $44.2B

5Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 6: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

According to the American Association of Professional Coders

6Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 7: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Kaiser’s Organizational Imperative

• Kaiser Permanente As a Complex Organization:• Insurer, Care Delivery, Hospital System, IT, Vendor Relationship

• Kaiser Permanente as a Leader in Integrated Care Delivery

• Kaiser Permanente As the Largest Non-Governmental Deployment of EMR in the World

Kaiser Permanente Will Have to Take a Multi-Year and Multi-Disciplinary Approach for ICD-10 Readiness

7Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 8: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Kaiser Permanente’s Approach Organization Wide

8

2009 2010 2011 2012 2013Assess impact Plan approach Complete

systems readinessExecute plan

10/1/2013 ICD-10 compliance

5010

Systems identified to size impact

Draft systems approachIT

Vendor Readiness survey

Business Review: impacted apps, processes and policies

Bus

ines

s

Refine plan. Remediate, retire, replace applications in line with compliance approach.

Testing/ Deployment / Transition

Coordination with and tracking of vendor readiness activities

Coordinated vendor testing; risk mitigation

Readiness for business-supported apps; revision of policies and procedures; organizational readiness

Pro

gram

Multi-year plan framework

National and RegionalGovernance structures

General awareness, communications and training

Role-specific trainingPrerequisites trainingCoP: Curriculum and approach

Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 9: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Example ICD-9 to ICD-10

9Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 10: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Comparisons of the Diagnosis Code Sets

ICD-9-CM ICD-10-CM

3-5 Characters in Length 3-7 Characters in Length

Approximately 13,000 Codes Approximately 69,000 Available Codes

First Digit May Be Alpha (E or V) or Numeric; Digits 2-5 Are Numeric

Digit 1 Is Alpha; Digits 2 and 3 Are Numeric; Digits 4-7 Are Alpha or Numeric

Limited Space for Adding New Codes

Flexible for Adding New Code

Lacks Detail Very Specific

Lacks Laterality Has Laterality (i.e., Codes Identifying Right Vs. Left)

10Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 11: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

ICD-10 Code Structure

• ICD-10-CM • CM = Clinical Modification of the WHO Diagnostic System for the US

– Characters 1-3 – Category – Characters 4-6 – Etiology, anatomic site, severity, or other clinical

detail – Characters 7 – Extension

• ICD-10-PCS• PCS = Procedural Coding System (Inpatient Hospital Use)• Only the US Uses PCS

– Character 1- Name of Section– Character 2- Body System– Character 3- Root Operation– Character 4- Body Part– Character 5- Approach– Character 6- Device – Character 7- Qualifier

11Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 12: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Clinical Example, ICD-10-CM

A Provider Sees a Patient in a Subsequent Encounter for an Age Related Pathological Fracture to Left Humerus with Delayed Healing:•ICD-9-CM Code: One Code 733.11 PATHOLOGICAL FRACTURE OF HUMERUS•ICD-10-CM Takes into Account Several Elements to Get More Granular Code M80.022.G:

– In ICD-10-CM Many Choices for the First 3 Characters Depending on the Category (M80)

• Osteoporosis with current pathological fracture– ICD-10-CM Presents Several Other Choices Dependent on the Clinical

Information (022):• M80.021 Aged related osteoporosis with current pathological fracture, humerus, right• M80.022 Aged related osteoporosis with current pathological fracture, humerus Left• M80.029 unspecified

– ICD-10-CM must identify encounter and healing status, this is the extension code (G)• A) initial encounter for fracture• D) subsequent encounter for fracture with routine healing• G) subsequent encounter for fracture with delayed healing• K) subsequent encounter for fracture with non-union healing• P) subsequent encounter for fracture with malunion healing• S) sequela

12Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 13: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

ICD-9-CM Vs. ICD-10-CM

• Prior Example of Age Related Pathologic Fracture Yields 18 codes in ICD-10-CM Vs. One Code Available in ICD-9-CM

• If We Were to Compare and Code for Traumatic Fracture Instead of Pathologic Fracture:– 26 Codes in ICD-9-CM Vs. 966 Codes in ICD-10-CM26 codes (13 closed fracture and 13 open fracture) in ICD-9 - 812.x966 codes (138 codes x 7 alpha extensions includes Initial Open and Initial Closed) in ICD-10 - S42.2xx to

S42.49xx

13Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 14: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Impact on Documentation by the Clinician

• How Specific Do We Need to Be When Documenting in ICD-10?

• Is More Specific Better for Patient Care, Quality Initiatives or Revenue Impact?

• Can Extreme Request for Specificity Backfire and Lead to Vague Data and Sometimes Outright Incorrect or Erroneous Data?

What Would the Impact Be on Provider Productivity?

14Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 15: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Impact and Optimization of EMR

• Mapping for ICD-10 and Making Display Names and Synonyms Available for Easy Retrieval

• Implementation of New Coding Tools in EMR to Help Selecting Correct Codes

• Remediation and Mapping of:– Structured Data (Problem List, PMH, Decision Support Tools)– Existing Documentation Tools– Quality Reports– Utilization Management Reports– Clinical Protocols– Population Registries

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Page 16: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Kaiser’s Expectations

• Kaiser Permanente, Kaiser Hospitals and Permanente Medical Group Will Be Ready for an October 2013 Transition to ICD-10– All Impacted Systems Will Be Remediated– People Impact Will Be Minimized– Training and Workflows Will Be Optimized For a Smooth Transition

with a Minimal Disruption

• Progress to Date: – Completed Inventory of Impacted System Program Wide– Significant Progress on People Impact and Training Program Wide– System Remediation, Mapping and Crosswalk of Codes Already in

Progress

16Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 17: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

ICD-10 Imperative and Call to Action

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Page 18: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Where It All Came Together…

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Page 19: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Timeline/State of Readiness• Key Dates

– 9/30/13: Last date to use ICD-9– 10/1/13: Effective Date ICD-10– Delay potential due to MU Stage 2 delay?

• Coordination with 5010 (Comply with 5010 First)• Preparation / Assessment

– EHR Upgrade Synchronization– Workflow Improvements

• Benefits of ICD-10– Data Precision – Discrete Cost Analysis– Improved Payer / Provider Discussions / Negotiations– Improved Portfolio Management

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Page 20: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Benefits of ICD-10

• More Specific Coding / More Accurate Reimbursement

• Faster Reimbursement / Fewer Denials (Long-Term)• Able to Accommodate Treatments Post-ICD-9• Better EMR Support• Improved Safety, Medical Management and Quality

of Care• Improved Portfolio Management• Redesign Clinical and Administrative Operations• Enhance Integration with Payers and Providers

20

Source: Accenture: “Preparing Payers for ICD-10”

Page 21: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Industry Benefits of ICD-10

Summary of Estimated Benefits over a Ten-Year Period

Category Benefit ($ Million) Largely Due To

More Accurate Payment for New Procedures

100-1,200 ICD-10 PCS

Fewer Rejected Claims 200-2,500 Both

Fewer Fraudulent Claims 100-1,000 Both

Better Understanding of New Procedures

100-1,500 ICD-10 PCS

Improved Disease Management 200-1,500 ICD-10-CM

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Source: “The Cost and Benefits of Moving to ICD-10 Code Sets” by Rand Science and Technology

Page 22: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Potential Provider Business Opportunities

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► Improved portfolio management

► Improvement opportunity - Clinical and Operational Redesign

► Improvement opportunity - Clinical Documentation by Physicians

► Increased patient/provider loyalty

► Improved payer/provider integration

► None to minimal impact to bottom line

BusinessBenefits

Courtesy of: 3M

Page 23: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Source: Trizetto Presentation 2010

Potential Payer Business Opportunities

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► Improved qualityof care

► Reduced costof claims

► Increased member satisfaction

► Increased provider satisfaction

► Improved administrative cost

BusinessBenefits

Courtesy of: 3M

Page 24: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

ICD-10 Projected Impact

The Move to ICD-10 Is Expected to Cost $1.64 Billion Dollars•The Centers for Medicare & Medicaid Services Estimate That the Transition from ICD-9 to ICD-10 Will Cost the Healthcare Industry $1.64 Billion•Also in 2008, Nachimson Advisors, LLC Estimated These Impacts of ICD-10:

– Typical Small Practice: Total Cost Impact $83,290 Per Practice– Typical Medium Practice: Total Cost Impact $285,195 Per

Practice– Typical Large Practice: Total Cost Impact $2.7 Million Per

Practice

24Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 25: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Date Impacts

• Claims That Cross the 10/1/13 Boundary• Discharges

– Services Provided Prior to 10/1/13: No Change– Services Provided On or After 10/1/13: All Use ICD-10; Convert

from ICD-9• Code Freezes

– 10/1/11: Last Regular, Annual Updates to Both ICD-9-CM and ICD-10

– 10/1/12: Only Limited Code Updates to Both ICD-9-CM & ICD-10 Code Sets To Capture New Technology And New Diseases

– 10/1/13: Only Limited Code Updates to ICD-10 Code Sets to Capture New Technology And New Diseases

• Define Your Approach Organization-Wide

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Page 26: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Where Are You with ICD-10 Planning?

• ICD-10 Steering Committee• Comprehensive Assessment

Completed with Issues Identified

– 5010 Readiness – IT Systems-System Inventory– Decision Support– Case Management– Utilization Review– Managed Care/Payer

Contracts– Quality Department– Functional Areas That Use ICD-

9 Codes Today That Need Translation

– Educational Needs Within Organization

– Documentation Assessment

• Claims Analysis to Identify Top Specialties Impacted the Most

• Vendor Readiness– Testing Schedule

• Managed Care/Payer Contract Readiness

• Implemented Education Plan• Implemented Documentation

Improvement Plan for ICD-10– CDI Program w/ I-10 Concepts– Identified Top Specialties and

Education to Physicians• Roadmap Completed for

Implementation

26Courtesy of: 3M

Page 27: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Implementation of ICD-10

• HIMSS ICD-10 Playbook http://www.himss.org/ASP/topics_ICD10Playbook.asp

– Reviews Known Risks—Direct/Avoidable – Reviews Hidden Risks—Indirect and Complex: Can Cause Irreversible Damage

• Payer Readiness Variability• Necessary Payer Conservatism

– Assume Miscoding—Increased Denials– More Diligent In Validating Appeals—Cash Flow Delays– Evaluate Contracts Based on Assumptive Trend Data

• Inevitable Lender Uncertainty– Delays in Cash Flow Will Result in Decreased Net Revenue, Results in More

Scrutiny of Margin– Get Approved Lines of Credit In Place Now

• Payer Will Need Extensive Modeling, Will Adjust Rules as They Gain Experience• Configuration Mistakes Will Lead to Re-Billing

2013 Is Just The Beginning. If You Get Behind, You Stay Behind!

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Page 28: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

What You Need to Be Addressing Today

• Comprehensive Assessment of Functional Areas Impacted – Vendor/Payer Gap Analysis– Identify Functional Areas and Processes That Will be Impacted– Develop Roadmap for Successful Implementation

• Begin Translation Process– Translate Lists of Codes for Appropriate Applications (Software/ Paper)– Assess Payer Contract Implications and Begin Translating/Working with Payer

Regarding Future Contractual Agreement for Transition to ICD-10

• Documentation and Current Claims Assessment– Review of Claim/Code Volume of Codes that Cannot be Translated– Identify High Volume Trends (Codes, Specificity, etc.)– Documentation Review of These Codes for Accuracy and Specificity

• Begin Process of Changing Physician Documentation Behavior– Utilize Trends from Documentation and Claims Assessment to Begin to

Educate and Change Physician Behavior Now

28Courtesy of: 3M,

Page 29: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

ICD-10 Implementation: Critical Success Factors

• Knowledge Transfer/Education Provided to Key Leadership/Teams Staged According to Fully Integrated Program Plan Development and Execution.

• Fully Integrated IT And Other Systems Currently Containing ICD-9 Codes Across All Hospital, Vendor, Payer and Other Integrated Systems (Electronic and Other)

• Comprehensive Internal And External Communication Strategy/Plan

• Detailed Contracts with Other Providers, Payers and Vendors with Clear Identification of Timing, Integration and Conversion/Translation Applications

• Comprehensive Modeling and Integrated Functional Testing Plan Across the Continuum of Care

29Courtesy of: 3M

Page 30: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Tools: Conversion / Crosswalk Activities

• General Equivalence Mappings (GEMs) Assist in Converting Data from ICD-9-CM to ICD-10

• Forward and Backward Mappings– Information on GEMs and Their Use –

http://www.cms.gov/ICD10 (Click on ICD-10-CM or ICD-10-PCS to Find Most Recent GEMs)

– Description of MS-DRG Conversion Project http://www.cms.gov/ICD10/17_ICD10_MS_DRG_Conversion_Project.asp

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Page 31: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Best Methods To Reduce Claims And Coding Errors

Increased Specificity Makes Accurate Documentation Critical Garri Garrison, 3M ICD-10 Could Turn Revenue Cycle Management Upside Down Doug Brilbrey , SSI Group There Are 2 Reasons Mistakes Happen Greg Larson, TriZetto

Info Is Missing or Inconsistent; Diagnosis & Procedural Codes Are Inappropriate for Type/Level of Care

Successful Transition Requires Planning and Collaboration Lisa Nolan, PatientKeeper

Key to Reducing Errors Is Education Ken Bradley, Navicure Control the Accuracy of Coding Where It Matters Kimberly Labow, Navinet Correct Coding Begins with Thorough Documentation Kristen Weinberger,

Edifecs Need to Evaluate the CAC (Computer Assisted Coding) Mark Morsch, A-Life Systems Medical, part of Ingenix Key is Remediation Ray Desrtochers,

HealthEdge Must Have Detailed Contracting Arrangements Ravi Sabharwal, Infosys

Technologies 31

Page 32: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Best Methods To Reduce Claims And Coding Errors

• Mobile Solutions Are Important Paul Adkison, IQMax• Whole Practice Must Embrace the Challenge Rex Stanley, Unicor

Medical • Important to Identify Early Opportunities to Optimize William Shea

Systems Cognizant Business Consulting

• Best Approach Will Start with an Impact Assessment Rob Culbert, Culbert Health Solutions

• Education, Training and Support Are Keys to Avoiding Steve Sabino, DST

Costly Errors Health Solutions• Create an Acceptance Test that Defines the Expected Sal Novin, Health Care

Outcome Productivity Automation

• Education Will Remove Barriers to ICD-10 Success Deborah Nevill, Elsevier

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Page 33: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Impact of ICD-10 Among Stakeholders

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Page 34: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

According to the American Association of Professional Coders

34Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 35: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Steering Committee

• ComponentsExecutive Sponsor : Often the CFO– Governance– Leadership:

• IT / HIM/ CMO / CNO– Broad Stakeholder Participation– PMO Office

• Message: High Level Engagement and Commitment of Senior Management

• Consider: Payer Perspective as a Stakeholder

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Page 36: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Steering Committee

Role / Responsibilities:• Develop / Implement

– Goals– Schedule / Milestones

• Assign Tasks / Resources• Oversee Organization-Wide Training• Assess Impact/Modify Course

– Of Implementation– On Functional / Other Areas

• Communications (e.g., Awareness, Status)

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Page 37: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Kaiser Permanente’s Approach National vs. Regional

37

Executive Sponsors (Regional)

Steering Group (Regional)

Executive Sponsors (National)

Steering Group (National)

Org Readiness

National Lead(s)

For Each Functional Area

Compliance PMOReg.

Business Lead(s)

Reg. IT Lead Additional team

structures to bedetermined by each region

Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 38: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Sample Organization Structure

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Page 39: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Physician Impact • Appreciate Time, Complexity, & Level of Difficulty

– Documentation Will Change– Will Take Longer; May Need To Be Repeated; Delinquent Charts– Also Being Impacted At The Office Level AND– Need To Take Care Of Patients!!

• Engage & Train Physicians On Importance Of Changes

– Address Adoption Issues, Training Sessions, Tools

• Conduct Workflow Analysis– Potential Gaps– Redesign Workflows And Documentation Products

• Prepare To Minimize Impact– Consider Preparation Of Billing Under Both Coding Systems

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Page 40: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Nursing Impact

• Appreciate Time, Complexity, & Level of Difficulty– Same Organizational Change Issues as Physicians– Awareness of Impact Initiative in Other Departments

– Physicians, Utilization & QA Review, Agency Personnel!!– Training Needs– Forms & Orders Will Change; Documentation Will Need to Be More

Specific:• EG. Pressure Ulcers: ICD 9 = 9 codes; ICD 10 > 125 codes

• Don’t Underestimate the Value of a Nurse– Critical to engage: understand A & P, disease process, can read

surgical reports and can explain what happened/how treated– Can serve as translators between Physicians and HIM

• Consider Role for Nursing Specialists/Informaticists, RN-Coders: :http://community.advanceweb.com/blogs/nurses_18/archive/2011/04/25/nursing-s-role-in-icd-10-meaningful-use.aspx

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Page 41: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Operational / Functional Impact

Productivity will be effected in Real $$•Productivity Decreases Expected, Beyond Transition •Cash Flow Impact Resulting from Lowered Productivity:

– Claims Submissions– Reimbursements– Slowed Revenue Stream– A/R Drop– Audit Impact of Changes in Documentation– Increase in Cost Per Case for a Period of Time– Delays in Chart Completion Secondary to Physician Documentation– Charge capture Processes May Need Modifications

•Utilization Review / Case Management Impact•Stop Loss Initiatives Needed?

– Collaborate with Payers as Well41

Page 42: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Productivity Impact on Coding

Pre 1 Year Post 2 Year Post

Inpatient 4.62 2.15 (47%) 3.75 (81%)

Day Surgery 10.68 3.82 (36%) 8.53 (80%)

Emergency 10.37 6.49 (63%) 8.83 (85%)

• Canada Implemented ICD-10 in 2001 – Coders Did Not Return to Post Implementation

Productivity Levels– Use of Pre-defined Coding Lists Within Ambulatory Care

Settings Mitigated Drop• Sample of Canadian Coding Productivity Pre- and Post-ICD-10

– Expressed as Charts Completed Per Hour

42Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 43: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Technology Impact

• Software Programs & Testing Efforts• Clinical Documentation Programs will need Review

– Required to Support Accuracy– Lead to Enhanced Reimbursement and Severity-

Adjusted Clinical Outcome Measures1

• Multiple Sites – May Each Have Locally Customized Software

( Even If Using the Same Applications)• Forms Will Likely Change

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Page 44: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Who Requires Training?

• Coders• Other HIM• Clinicians

(Physicians, Nurses)• Senior Management• Information

Systems• Quality

Management• Utilization

Management

• Claims Analyst• Performance

Improvement• Compliance• Data Quality

Management• Data Security• Data Analysts

• Accounting• Business Office• Auditors &

Consultants• Patient Access &

Registration• Clinical Department

Managers• Ancillary

Departments

44Courtesy of: Kaiser Foundation Health Plan of Ohio Ohio Permanente Medical Group

Page 45: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Impact on Software Programs

• HIM– DRG Grouper -Encoding Software– Abstract Systems -Compliance Software– Medical Necessity -Support Systems– Case Mix Systems -Utilization Management– Quality Management -Case Management– Performance Management

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Page 46: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Impact on Software Programs

• Financial– Billing– Financials– Claim Submission– Compliance Checking– National And Local

Coverage– Determinations

• Reporting– Provider Profiling– Quality Management– Utilization Management– Disease Management

Registries / Other Registries

– State Reporting Systems– Fraud Management– Patient Assessment Data– Data Sets– Aggregate Data Reporting– Managed Care Reporting

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Page 47: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Impact on Software Programs

• Clinical Systems– Clinical Protocols – Test Ordering Systems– Clinical Reminder Systems– Decision Support Systems– Disease Management

Systems

• Internal Home Grown -Systems and Customizations

– Clinical Systems – Pharmacy Systems– Lab System– Radiology Systems– EKG

• Registration– Registration/Scheduling– Advance Beneficiary

Software– Medical Necessity Edits

47

Anywhere a Code or Diagnosis Resides or is Utilized WILL be Effected!!

Page 48: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Ancillary /Other Impact

• Ancillary– Pharmacy (V and E Codes Will Still Be Alphanumeric)– Lab (Codes Change)

• Quality Measures and Reporting• Public Health / Compliance Impact

– Data Is More Clearly Defined– Potential to Improve ACO Data

• Reporting

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Page 49: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Vendor Interface Impact• Create Inventory of Systems

– Define Those Impacted (Systems, Vendors)• Coding Vendor

– Compliance / Readiness of 5010 & ICD-10– Release / Implementation of System Updates– Costs

• Testing Interfaces (Bidirectional) – Affected Systems and Third-Party Recipients / Providers– Claims, Clearinghouses, Reference Labs, Affiliated

Physicians, Etc.– Costs

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Page 50: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Payer Impact

Consider:• Testing with Payers and Clearinghouses• Effects That ICD-10 Will Have on Explanation of

Benefits (EOB) Statements• Changes to Submitted Claims• Changes in Communications to Patients

– Handling of Questions / Calls from Patients– Who will they view as the cause of their anxiety

and frustration ?

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Page 51: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Competition for Essential Resources

Funding•Actual Project Costs•Ongoing Costs

Other Projects•Diversion of Funds & Other Resources to ICD-10 from Other Projects (CMS and Internally-Originated)

– Resistance– Delays Due to Fund Diversion

Time•Project Planning & Timing

People•HIM Staff, Physicians, Nurses, IT, Educators

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Page 52: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

• Budget– Changes and Implementation

• Costs of all Organizational / System Changes, Training, and Lost Productivity Impacts

• Ongoing Costs– Denials and Delayed Payables– Reserves

All Costs Are Higher Than You ThinkThe Longer You Wait, the More It Will Cost You

Financial Impact

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Page 53: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

The Road is Going to Be Bumpy

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Page 54: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

On October 1, 2013, Where Will YOU Be?

Here?

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Page 55: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

On October 1, 2013, Where Will YOU Be?

Or Here?

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Summary

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Page 57: Copyright Gap Consulting, Inc. 2011 A Practical Guide to Navigating the ICD-10 Waters Northeast Ohio HFMA July 28, 2011 1

Summary

Critical Success Factors:•Plan•Budget•Train•Obtain Detailed Input Through Work Sessions

– Payers / Providers• Coverage Guidelines, Contracts/Policies, Technology, People

•Create Focus for Strategic Decisions – Leverage ICD-10 As an Enabler to Future Direction– Establish Framework for When to Comply and/or Optimize within a

Business Domain/ Service Line– Establish a Path for Benefit and Reimbursement Strategies (i.e.,

Value Based Benefits/ Reimbursement/ Purchasing) – Identify Drivers for Portfolio Management

•Closely Coordinate•Communicate, Communicate, Communicate

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Informational Resources / Links

• AHIMA www.ahima.org– ICD-10-CM/PCS Transition: Planning and Preparation

Checklist• HIMSS www.himss.org

– ICD -10 Playbook www.himss.org/ASP/topics_ICD10Playbook.asp

– ICD-10 Task Force: ICD -10 Implementation Cost Prediction Modeling Tool

• Predicts Financial Impact Post Implementation• Covers Incremental Costs vs. Status Quo• Excel Format

– ICD- 10 CM/PSC Tools and Resource Guide– 5010/D.O & ICD-10 Interrelationships (crosswalk table)

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Informational Resources / Links

• AAPC www.aapc.com– ICD-10 Impact on Productivity

• http://news.aaapc.com/index/2011/03/icd-10-impact on productivity

– ICD-9 to ICD -10 Reference Sheet• CMS https://www.cms.gov/ICD10/04_CMSImplementationPlanning

• AMA www.ama-assn.org -resources for physicians– http://www.ama-assn.org/ama/pub/physician-resources/solutions-

managing-your-practice/coding-billing-insurance/hipaahealth-insurance-portability-accountability-act/transaction-code-set-standards/icd10-code-set.page?

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Informational Resources / Links

• AHIMA www.ahima.org– ICD-10-CM/PCS Transition—Planning and Preparation Checklist

• HIMSS www.HIMSS.org– ICD-10 Initiation & Planning– ICD-10 Implementation– ICD-10 Implementation Cost Prediction Modeling Tool

• Ingenix www.ingenix.com– ICD-10-CM: Diagnostic Coding for the Future

• Experis www.himss.org/content/files/ICD10IdentifiedGenericRisks_Experis.pdf– ICD-10 Identified Generic Risks

• Benchmark www.benchmarkrevenue.com/@api/.../=Benchmark_ICD_10_Checklist.pdf– ICD-10 Checklist

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Are You Ready?

Now That You’ve Seen What’s Needed:•Are You Prepared?•Have You Started Yet?•Will You Be Able to Do Everything in Time?

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Questions & Answers

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Contact Information

• Dr. Nabil [email protected]: 216.362.2770•Lynn [email protected]: 216.789.0041

• Gail [email protected]

Phone: 216.789.1602

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