MGMA study finds ICD-10 preparedness lagging

A recently released survey by the Medical Group Management Association (MGMA) adds to a chorus of studies finding that the healthcare industry is widely unprepared for the ICD-10 conversion, which becomes mandatory on Oct. 1, 2014.

Of 1,200 practices, which represent more than 55,000 physicians, only 4.8 percent reported that they have made significant progress when rating their overall readiness for ICD-10 implementation. Those surveyed said they are “very concerned” about the overall cost of ICD-10 conversion (55.6 percent); loss of productivity of coding staff after implementation (67.3 percent); changes to clinical documentation (69.8 percent); and loss of clinician productivity after implementation (70.1 percent), according to the research published on June 13.

Lack of communication and coordination between physician practices and vendors on ICD-10 software updates and testing represented the largest concern among physicians.  More than 52 percent of respondents indicated they had not received contact from their practice management system vendor and 50 percent had not heard from their EHR vendor regarding software changes to prepare for compliance, according to the research. Likewise, about 60 percent reported that their clearinghouse has not yet contacted them regarding a testing date.

In other findings, nearly 60 percent of respondents stated they are “slightly” or “not at all confident” that their major health plans will be ready to meet the compliance date. For those organizations that must cover the costs themselves, the average cost for a 10-physician practice to upgrade or replace their practice management system and EHR software to accommodate ICD-10 is $201,690.

The transition to ICD-10 is “proving to be one of the most complex and expensive changes our healthcare system has faced in decades. Adding to the implementation challenge and clearly taxing all stakeholders, ICD-10 will arrive at the same time that a number of other transformative federal policies go into effect, such as health insurance exchanges and Stage 2 of the CMS Meaningful Use EHR Incentive Program,” said Susan L. Turney, MD, MS, MGMA president and CEO, in a statement.

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