Given that ICD-10 compliance day is still nearly three years from now, most of the chatter about a total industry-wide sum for new code sets has leaned toward projecting an overall cost. But there's a flip-side: the cost-savings that converting to ICD-10 will bring the healthcare realm – and to the tune of billions of dollars.
First, a step backward. In a previous article, ICD10Watch asked how many billions will ICD-10 cost the healthcare industry? Now, there are varying answers, but most agreeably soar beyond $2 billion.
In a plot-thickening twist, HHS (Health and Human Services) puts the other side of that coin – ICD-10's projected cost-savings – at $2.2 billion over a 15-year period.
[Related: 9 ways ICD-10 will better the business of healthcare. See also: McKesson's 10 steps to ICD-10 for providers.]
“The transition to ICD-10 is a front-loaded situation. Organizations will have to bear more expense in the near-term to realize longer-term benefits. These benefits will start kicking in after October 2013 once ICD-10 claims are active,” explained Shantanu Nigam, president, Exxova’s healthcare vertical solutions.
Such long-term benefits, and cost-savings specifically, span five categories:
1. More accurate payment for new procedures
2. Fewer rejected claims
3. Fewer improper or fraudulent claims
4. Better understanding of new procedures
5. Improved disease management
That's not to guarantee any of those five categories will pertain to every health organization..
“If organizations only focus on compliance and miss the opportunity to capitalize on the more accurate reporting and claim processing enabled by ICD-10’s comprehensive code set,” Nigam adds, “they may actually be strapped with additional costs.”
Tom Sullivan blogs regularly at ICD10Watch.com.
