ICD-10: The Gift of Time… and How to Spend It... WHITE PAPER Inside May 2014
Transcription
ICD-10: The Gift of Time… and How to Spend It... WHITE PAPER Inside May 2014
May 2014 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Executive Summary Health care professionals across the spectrum are having a serious case of déjà vu, as they find themselves, once again, a year away from the newly extended deadline for the transition from ICD-9 to ICD-10. While there is a wide range of opinion on the value of this delay, it cannot be argued that this transition will impact every aspect of claims processing, reimbursement, clinical documentation, payer relations and coding, as well as audit, compliance and risk management programs across health care organizations. Whether or not you personally agree with the delay, the positive consequence is that organizations have the opportunity to use the extra time to increase education and physician engagement, complete systems work and data integration, ensure vendors are on track, improve documentation, and ultimately ensure they get appropriately reimbursed for the care provided. In previous whitepapers and articles , we discussed how providers can simultaneously address all of these initiatives through clinical documentation improvement, which relies on a solid understanding of reimbursement. We drew attention to the connection between clinical documentation, quality measures, audit targets and ICD-10, as each of these topics is integrally linked to the on-going industry move towards electronic health records. We encouraged providers and payers to perform their own comprehensive end-to-end testing to avoid multiple financial risks. Inside Collaboration across the Spectrum2 Training Your Systems: Data Set Transitions 3 Vendor Challenges 6 Clinical Documentation Improvement Strategy 7 Physician Engagement 9 Expand and Finalize Education Plans 11 Payer Implications 13 Minimizing Financial Risk 14 Our Solutions 16 1 Regardless of where your organization stands on the ICD-10 preparation continuum, any health care organization can use the delay—this gift of extra time—to ensure readiness and reduce risk. This paper will focus on those areas that are most likely to ensure success in completing the final transition to ICD-10 prior to the new implementation deadline. Copyright CCH. All rights reserved. 1. Visit www.mediregs.com/resource-center to find all whitepapers, articles, and blog posts on ICD-10 previously published by Wolters Kluwer Law & Business. mediregs.com Summary19 2 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Collaboration across the Spectrum At the time of the latest delay announcement, the health care industry was just six months away from implementing ICD-10, with many organizations well on their way to preparedness. Some organizations had completed initial assessments, were engaged in implementation planning and possibly even beginning implementation steps. Others were, perhaps, not so far along. Wherever you currently stand with your transition plan, do not allow the delay to impact your organization’s momentum. Leverage the investments you have made thus far and continue to work toward the new implementation date, utilizing the next year as a gift—the gift of time. The transition to a new code set, ICD-10 in this case, has implications that extend throughout an entire organization, including information systems. Whether your organization is large or small, a wide range of processes will be impacted: • Scheduling & Registration, • Coordination of Care, • Delivery of Care, • Documentation, • Coding, • Claims Submission & Adjudication, • Reimbursement, • Audit, and • Quality Reporting. Given the widespread impact, it is best to take a holistic implementation approach where the entire organization is engaged. While some areas will absolutely be affected to a greater degree than others, the impact of poor implementation planning in any of these areas will be felt throughout the organization. As such, the organization must break down any remaining silos and work together as one to achieve compliance, utilizing effective change management techniques. If not already in place, establish a multidisciplinary oversight team to lead your organization through successful implementation. As a collaborative team, the team members should be collectively knowledgeable of current processes across the organization and how the ICD-10 code set impacts each process. Do not allow the delay to impact your team’s engagement. In order to maintain your momentum, continue to meet on a regular basis to ensure ICD-10 preparedness. Copyright CCH. All rights reserved. mediregs.com Because ICD-10 is an organization-wide issue, the work an organization needs to do to prepare and sustain once ICD10 is implemented can be daunting. All organizations will need to change the way they currently do business under ICD-9 to be successful under ICD-10. 3 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Capitalize on this time to revisit or complete a comprehensive impact analysis, identifying all impacted departments, individuals, processes, systems, documents, etc., and any existing gaps. Engage focus groups of impacted constituents and subject matter experts to assist with: • Defining new processes; • Refining existing processes; and, • Updating forms, templates, etc. to support ICD-10. Use your regular meetings to collaborate on organization-wide initiatives, such as ongoing education programs, clinical documentation improvement initiatives, EHR implementations, and the implementation of computer assisted coding solutions. These organization-wide initiatives will not only help you improve efficiency, compliance, accuracy and quality of care today, but will also provide a solid basis for ICD-10 implementation. Working as a collaborative team across the organization is the key. Poor implementation of ICD-10 has a variety of ramifications that ultimately can impact an organization as a whole, from the delay or denial of reimbursement to the inevitable audit activity that is sure to follow final implementation. Solid planning through collaboration will ensure that the organization is prepared, that no stone is left unturned, and that when ICD-10 is finally implemented it can just be business as usual. Training your Systems: Data Set Transitions ICD-10 not only impacts various information systems utilized by the organization, requiring updates or system upgrades to accommodate, process and retain ICD-10 codes; but it also has an impact on various other data sets utilized in the industry. These data sets are utilized within and in conjunction with various software and platforms within health care organizations to support their billing, reimbursement and compliance. In order to “train” your systems and tools to handle ICD-10, you’ll need to transition their data sets. The delay gives providers, payers, vendors and CMS time to further create and validate translations to ICD-10. Depending on your setting, you may need a number of the following ICD-10 data sets outlined in the chart below along with a description, translation status and location for translated information. Copyright CCH. All rights reserved. mediregs.com Not all specialties are affected equally, so it is recommended that immediate focus be placed on those specialties most deeply impacted. This will come from your claims analysis, but we generally see major shifts in cardiology, orthopedics, obstetrics, and other specialties and conditions (such as sepsis) currently included in the CMS quality programs. 4 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Medicare Code Edits Diagnosis codes on Medicare claims are subject to a number of different checking rules or “edits”. These rules identify if a code is valid or “reportable”, whether the age and gender of the patient correlates to the assigned code, and more. There are two manuals that CMS publishes that detail diagnosis code edits: the Outpatient Code Editor (OCE) for outpatient and physician claims, and the Medicare Code Editor (MCE) for inpatient claims. The edits are subject to the public rule-making process. Key lists of code attributes and edits include: Age Edits: Adult diagnoses Newborn diagnoses Pediatric diagnoses Maternity diagnoses Gender Edits: Diagnoses for females only Diagnoses for males only CC/MCC Edits: “CC List” - Diagnoses Defined as Complications or Comorbidities “MCC List” - Diagnoses Defined as Major Complications or Complications and Comorbidities Exclusions List Hospital Acquired Conditions/Present on Admission Edits Hospital Acquired Conditions List Present on Admission Exempt Code List CMS 2014 (v31) MS-DRG Definitions Manual with ICD-10 codes in PDF and TXT format. http://www.cms.gov/Medicare/Coding/ICD10/ICD-10-MS-DRG-ConversionProject.html CMS 2014 (v15.0) ICD-10 Dx Edit Code Lists in PDF format http://www.cms.gov/Medicare/Coding/OutpatientCodeEdit/Pilot-I-10-IOCEUser-Manual.html Medicare Physician Quality Reporting A reporting program that uses a combination of incentive payments and payment adjustments to promote reporting of quality information by eligible professionals. The reporting process includes a list of specific quality measures mapped to diagnosis and procedure codes. 2014 ICD-10-CM codes I n the CMS PQRS “Single Source Code Master” XLS file. http://www.cms.gov/Medicare/Quality-Initiatives-Patient-AssessmentInstruments/PQRS/MeasuresCodes.html Medicare Coverage and Medical Necessity Medicare and the Medicare Administrative Contractors (MACs) publish narrative “Coverage Determinations” that detail coverage specifications (including diagnoses) for procedures and services. MAC Local Coverage Determinations (LCDs) and Coverage Articles include a coding section that is generally used to specifically list diagnosis codes that support medical necessity. Beginning in March, 2014, MACs began releasing ICD-10 versions of their LCDs and Articles. These are given an LCD ID number that is distinct from the ICD-9 versions, and are marked as “future” documents. Historically, CMS publishes National Coverage Determinations (NCDs) with a discussion of the indications and limitations of coverage, but do not translate that to specific diagnosis or procedure codes. Recently, CMS has begun issuing special transmittals with attachments that list the ICD-10 codes that would apply to a medical necessity edit related to specific NCDs. They point out that this is an exercise, and it is unclear whether they intend to continue to publish this information so transparently. An interesting part of this exercise is the translation of the coding rules for both Medicare Part A and Part B, which includes an implied ICD-10-PCS to CPT® crosswalk for services that are addressed by a NCD. Local Coverage Determination & Coverage Articles Various MAC Websites National Coverage Determinations http://www.cms.gov/medicare-coverage-database/details/ncd-details.aspx?NCDI d=110&ncdver=3&bc=AgAAgAAAAAAA& Example: R1199OTN [CR 8197] dated March 15, 2013, International Classification of Diseases (ICD)-10 Conversion from ICD-9 and Related Code Infrastructure of the Medicare Shared Systems as They Relate to CMS National Coverage Determinations MS-DRG Definitions and Grouper CMS uses a Medical Severity Diagnostic Related Group (MS-DRG) methodology to determine payment for inpatient stays. This system relies on a grouping methodology where the patient diagnoses and the procedures performed during the stay are “grouped” to MS-DRG. The MS-DRG Definition Manual identifies the diagnoses & procedures assigned to a given MS-DRG CMS pilot 2014 (version 31) ICD-10 MS-DRG Definitions Manual http://www.cms.gov/Medicare/Coding/ICD10/ICD-10-MS-DRG-ConversionProject.html Software called the “Grouper and Medicare Code Editor”, which must be purchased separately. Inherent to this logic is a number of other data sets, including information related to hospital acquired conditions, present on admissions, and codes considered to be CC/MCC. http://www.ntis.gov/products/cms-medicare.aspx mediregs.com 5 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Medicare CMS-HCC Risk Adjustment CMS uses a risk adjustment payment system, called the Hierarchical Condition Category (HCC) payment model, to pay Medicare Advantage (MA) and Prescription Drug Plans (PDPs) accurately and fairly, adjusting payment for enrollees based on demographics and health status. The payment model relies on clinical coding (ICD-9CM codes) gathered by providers and submitted by the health plans to CMS. HCC’s group a large number of distinct diagnoses into about 70 diagnostic groups. CMS preliminary ICD-10-CMS-HCC and RxHCC Models in excel format https://www.cms.gov/Medicare/Health-Plans/MedicareAdvtgSpecRateStats/ Risk-Adjustors.html Regulations and Regulatory Guidance Additional information will be published by HHS, CMS, CDC, other agencies, state governments and state Medicaid agencies. Providers should monitor and track this incoming information to incorporate into policies and procedures. Federal Register Proposed and Final Rules provide announcements about ICD-10 as it relates to the yearly prospective payment system updates, quality reporting requirements, code edits, and other rules that are established via the rule making process. https://www.federalregister.gov/ Medicare Internet Only Manuals (Pub 100s) – CMS has already begun revising sections that include specific ICD-9 codes to provide the ICD-10 translation. They tend to put the term (ICD-10) in the title. As an example, see CR 7806, which revised Pub 100-02, -03 and -04 sections related to Extracorporeal Photopheresis. http://www.cms.gov/Regulations-and-Guidance/Guidance/Manuals/InternetOnly-Manuals-IOMs.html MLN matters, Special Edition, Fact Sheets and educational materials CMS has often simply incorporated into existing documents and in some instances specifically calls out/lists on the CMS ICD-10 page. http://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/ MLNGenInfo/index.html CMS General Equivalence Mapping (GEM) files that provide mapping between ICD-9-CM and ICD-10-CM. http://www.cms.gov/Medicare/Coding/ICD10/ The Center for Disease Control (CDC) publishes outreach, education and advocacy materials; data repository information; and shared ICD-10 training resources with other HHS agencies. http://www.cdc.gov/nchs/icd/icd10cm.htm Health Resources and Services Administration (HRSA) produces webinars and newsletters to HRSA grantees related to ICD-10 adoption. http://www.hrsa.gov/healthit/icd10/ National Institute of Health (NIH) Surveillance Epidemiology and End Results (SEER) program creates mappings for key ICD-10 impact areas including registries and research databases. http://seer.cancer.gov/tools/conversion/ Indian Health Services (IHS) produces resources for I.H.S. institutions including “Have No Fear of ICD-10” boot camp, clinical rounds, full-blown communications plan. http://www.ihs.gov/icd10/ The Medicare Administrative Contractors (MACs) have started to produce ICD-10 guidance in various locations on their web-sites. Various MAC Websites Copyright CCH. All rights reserved. mediregs.com 6 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Vendor Challenges Most organizations do not go it alone, but engage vendors in a variety of capacities to augment their day-to-day processes. As such, vendor readiness becomes a key component to overall organization-wide ICD-10 readiness. Part of an organization’s initial assessment or organizational impact analysis should identify existing processes where vendors are engaged, as well as how they are engaged. Organizations must gain an understanding of: • The systems utilized by the vendor; • The status of vendor system updates to support the ICD-10 code set; • How vendor systems and data are integrated into the organization’s systems; • The vendors’ overall preparedness plans; • The inclusion of comprehensive ICD-10 education in the vendor’s preparedness plan; and, • For system vendors, the ability of the system to support ICD-10 (the new code set, incorporation into edits, rule translation, etc.) and maximize the use of technology. Don’t make the mistake of assuming that a vendor has comprehensive plans. Instead, utilize the additional time to obtain validation of specific vendor readiness and work toward preparedness. While most are prepared to engage in ICD-10 and related processes, you shouldn’t allow preparation activities to stop. Communicate regularly with your existing vendors and require written feedback related to their ICD-10 readiness status. For those still preparing, gain an understanding of their preparation plans and require routine status updates. Don’t forget to include your system vendors to keep testing on the radar, as the delay may push back end to end testing. Engage the vendor in testing discussions and schedule formal testing activities. Incorporate ICD-10 readiness and performance standards as a requirement for any new vendor relationships and update existing vendor contracts accordingly. As we have recently experienced, sudden changes in requirements can occur, so be sure to include force majeure language in your vendor contracts moving forward with provisions to address changes in governmental legislation. Lastly, include vendors in the internal organization preparedness plans. This may mean including them in planned ICD-10 education and organization-specific process training. As vendors serve as an extension of the organization, it is imperative that they are a consideration in the organization’s implementation plans. Copyright CCH. All rights reserved. mediregs.com 7 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Clinical Document Improvement Strategy With an additional year to prepare for ICD-10, organizations should take this time to thoroughly train physicians and coders to operate in the new environment. Included in this should be clinical documentation improvement (CDI) strategies to improve physician documentation and ensure that diagnoses and procedures are captured with the level of specificity required under the new code set. The reality is that ICD-10 will dramatically change the way that clinical information is captured. With more than 69,000 unique diagnostic codes and 72,000 procedure codes, ICD-10 contains more than eight times the number of codes used in ICD-9 and will require greater specificity than ever before. In addition, ICD-10 introduces alpha characters and can include anywhere from three to seven digits—a stark contrast from the numeric ICD-9 code set, which contains no more than five digit codes. As a result, the manner in which procedures and diagnoses are captured will greatly change. For instance, in ICD-10-CM atherosclerotic heart disease of native coronary artery with unstable angina is a single code (I25.110). However, in ICD-9 CM this requires two codes: Coronary atherosclerosis of native coronary artery (414.01) and intermediate coronary syndrome (411.1). Preparation and Training To prepare for this change, physicians must not only learn the new code set, but also learn to document in a manner that will justify the selection of one specific code rather than two broader codes. Yet, learning to adapt documentation to the new code set will prove to be an uphill battle. To that end, CDI strategies must include extensive preparation and training for both physicians and coders. Many physicians will find it necessary to change their current documentation habits and this cannot and will not happen overnight. Training should be progressive and spread over the months leading up to the transition if organizations hope to begin coding in ICD-10 on the new implementation date. Training should include hands-on practice in the new code set, allowing physicians to identify where codes have changed and where they must alter documentation in order to meet these changes. To accommodate physician training, a growing number of facilities are or soon will be coding in a dual ICD-9/ICD-10 environment to ensure coders and systems are fully ready for the transition, and to assess staff productivity, financial impact and other issues. Copyright CCH. All rights reserved. mediregs.com The effects of poor documentation within your EHR ripples out to produce payment delays, challenges with meeting quality reporting requirements, and increased risk of audit and review. 8 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely This level of training will play a key role in organizations’ planning initiatives, as provider education will ultimately translate to improvements in clinical documentation, which will be key to a successful transition. In addition, these improvements will also mitigate the risk of miscoded, rejected and improper reimbursement claims, thus improving the revenue cycle and enhancing the bottom line. Automated Documentation and Coding Leveraging structured reporting technology to automate procedure documentation and coding is also recommended as part of organizations’ broader CDI strategy, as this can streamline the transition and shorten the learning curve for physicians. By guiding physicians through the procedure documentation process, these systems ensure that each procedure is documented with the level of specificity and granularity required to ensure appropriate coding under ICD-10 and allow physicians to efficiently capture robust detail from even the most complex procedures. In addition, automation eliminates the human errors that often lead to incomplete documentation and incorrect coding. This will be important as the impact and trickle-down effect of the transition will touch nearly every department within the organization—from clinical documentation and coding to claims processing and reimbursement, as well as audit, compliance and risk management programs. Thus, the accuracy and specificity of physician documentation will also impact multiple software systems. Because of the wide-reaching impact of ICD-10, CDI strategies which include physician documentation improvement and structured reporting must be implemented now, if they have not already. For those in the midst of these programs, it is important that all efforts are continued over the next year to ensure that information is retained and physicians are ready for the implementation date. The reality is that whether ICD-10 is implemented in 2015 or 2025, physicians must make changes to their current processes and this is not possible without a strong CDI strategy in place. Copyright CCH. All rights reserved. mediregs.com 9 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Physician Engagement ICD-10 will usher in new opportunities and challenges for physicians. The transition to the new coding system presents unprecedented opportunities to capture the granularity needed to enhance patient care initiatives. At the same time, the uphill resource battle associated with training and infrastructure costs presents a daunting scenario for many physicians and health care organizations. Simply put, physician engagement strategies that begin early in the transition effort will be paramount to compliance success. Unlike the motivation behind Meaningful Use (MU) to increase EMR adoption in recent years, ICD-10 implementations are not backed by financial incentives. Physicians must be engaged in the process and educated on the far-reaching impact that delayed or ineffective implementation strategies will have on the bottom line. While physician groups affiliated with hospitals and health systems have the advantage of aligning with systems implementations that are backed by shared resources, research conducted by the American Medical Association suggests that the average private physician practice could be facing costs as high as $80,000 if they already have an EMR in place. Practices without an existing EMR may be looking at financial investments upwards of $250,000. These figures represent staggering costs and hindrances to engagement for physicians already faced with multiple regulatory initiatives wreaking havoc on budgets; but when considering the long-term impact of poor or failed transition efforts, these costs pale in comparison. Getting Buy-In Early Time is an important element of an effective physician engagement strategy, and private practices, clinics and other health care organizations should leverage the extra time available to achieve buy-in now. When considering the best approach to education and training going forward, start small and allow initiatives to grow at a reasonable pace to minimize the potential for overload and push-back. Identification of physician champions early in the process will also provide a beginning point for discussion and a natural course for breaking down barriers and pulling others into the implementation process. Copyright CCH. All rights reserved. mediregs.com For each of your different specialties, you will need to review the differences between ICD-9 CM and ICD-10 CM with the physicians. How you will train your Orthopedic physicians will be different from how you educate the Oncologists or Gastroenterologists. 10 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Once identified, these champions can build an ICD-10 task force that further engages clinicians. Consider that the engagement does not start and stop with physicians. Because the new coding systems is expected to impact every aspect of operations (IT, HIM, billing, reimbursement and clinical), change management will need to occur across an entire enterprise. Once key implementation leaders are identified, strategies should be thoughtfully laid out to make the most of a physician’s time. Be specific and purposeful with meetings and training sessions such that whoever attends finds value in the discussion and take away information relevant to a particular specialty or practice. Physician champions should be leveraged to promote the positives of the new coding system as well as encourage physicians in their day-to-day workflows. This means recognizing what physicians are doing right as well as areas needing improvement. Improving Documentation Workflows As new industry standards are introduced through MU (SNOMED CT®, RxNORM and LOINC) alongside other national initiatives such as HL7 and ICD-10, one universal challenge is lack of a common medical vocabulary, an issue that can add complexities to the documentation experience. Improving physician workflows prior to transitioning to ICD-10 can go a long way towards physician engagement and adoption. Industry research suggests that physicians are already discouraged that newlyadopted EMR workflows are not producing the workflow efficiencies that were originally expected. When physicians have to search out multiple codes to comply with MU and ICD-10, the negative impacts to documentation workflows are only exacerbated. Additionally, there is often a language gap between familiar terms that physicians are accustomed to using and the terminology found within new classification systems. Research from the HIMSS/WEDI ICD-10 National Pilot Program confirms the complexities of ICD-10, revealing that accurate coding occurs only 63% of the time with key offenses associated with specificity and laterality falling much shorter. A 50% drop in productivity was also noted. Consider that a SNOMED CT code may be required for a problem list, but the ICD-10 code could require further granularity of data such as the laterality of a fracture. Copyright CCH. All rights reserved. mediregs.com 11 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Effective terminology management strategies are paramount to laying the best foundation to support documentation efficiency and accuracy under ICD-10. When information from disparate sources can be normalized to achieve semantic interoperability across health systems, patient data can be mapped to standardized code sets such as ICD-10, reducing the number of “clicks” required during the documentation process. Effective terminology management can also enable clinicians to use familiar clinical terms—such as afib, ank fx or elevated BP—to streamline the process and improve accuracy. Mapping initiatives are complex, and while these strategies will prove effective to physician engagement, achieving this foundation of automated mapping can be daunting for resource-strapped IT departments. Many health care organizations are turning to provider-friendly terminology conversion tools to do the work for them. When considering the value proposition of health IT investments and the need to lay foundations that best engage physicians, the business case for terminology management strategies—and specifically third-party tools to support these efforts—is an easy one. Expand and Finalize Education Plans Now is the time to expand and finalize your ICD-10 education plans. Whether you have a small or large organization, physician practice, or you are a payer, ICD-10 education must be an ongoing process. Additionally, knowing how ICD-10 affects your staff’s or your audience’s daily workflow as this will help tailor your training and your training will be more effective in the long run. In reality, everyone works and learns differently and each at their own pace. The cost of training and potential loss of productivity has been a concern for most. The recent delay in implementation has allowed providers to take a step back and ease up on productivity for a while knowing that experts have predicted a loss of productivity between 10-50%. “Recruiting and retaining qualified coding professionals can be a challenge, but know that there is not a ‘one size fits all’ approach to training for ICD-10-CM and ICD-10-PCS.”2 With ICD-10-CM, coders can transfer their ICD-9-CM knowledge and skill set and can easily assign code(s) in ICD-10-CM without major educational efforts. Because the coding process and principles have not changed, if a coder has good working knowledge of ICD-9-CM, ICD-10-CM should be fairly easy to learn. Conversely, if a coder uses a cheat sheet and has had minimal training in ICD-9-CM, the transition Copyright CCH. All rights reserved. 2. AHIMA ICD-10/CAC Summit, April 23, 2014, Rose T. Dunn, MBA, RHIA, CPA, FACHE: “ICD‐10 Readiness: What Should Be on Your Agenda for the Next 18 Months”. mediregs.com In our experience, one of the biggest CDI challenges involves vocabulary. The terminology that the clinician uses in the medical record to describe a patient condition, the language of the diagnosis coding system, and the wording of the regulatory requirements can differ significantly. ICD-10-CM uses a much richer and descriptive vocabulary, which should mitigate some of this disparity in terminology, but providers can and should start to run translations now. 12 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely will be more difficult. An assessment process will support efforts to provide training for the different levels of knowledge and skill for coding professionals. Unlike ICD-10-CM, ICD-10-PCS is an entirely new system for coding inpatient procedures. Coding professionals must have a strong knowledge of anatomy, be able to analyze documentation to support coding decisions and have working knowledge of how surgical procedures are performed. It has been communicated by many professionals that organizations should adopt ICD-10 as the “gold standard” to prevent productivity issues. If providers continue the course with ICD-10 training and education, this, in turn, can shorten the learning curve, improve documentation across the spectrum, as well as collect data through “dual coding”. Whereas the data can be trended and studied to improve business and clinical operations rendering better patient care, quality outcomes and hopefully, reduce denials and improve reimbursement. AHIMA has published excellent resources3 regarding a successful ICD-10 training plan. Even with the recent delay in implementation announcement, the following concepts are concise and relevant, no matter where you are in understanding how ICD-10 affects your organization. As you plan, design or need to evaluate/re-evaluate your ICD-10 educational training blueprint, know that the following will consistently apply as you move toward implementation date and onward. • On-going and focused on the highest risk areas specific to your organization. Hit the top five this quarter, the next top five will emerge for your attention next quarter. • Job role-specific rather than one-size fits all. Doctors and coders learn differently, and your plan should respect this learning process. • Task-related not just conceptual. Provide specific “what to do” training in the software and systems available to each staff member. • Evidence-based and referenced, to give staff reasons to “buy in.” Provide statistical data about patient outcomes, financial facts about impact to reimbursement, and/or specific risk to the organization (likelihood of audit, remediation) if best practices aren’t followed. • Assessment-based. Understand what each staff member already knows by performing a knowledge gap assessment, and teach according to their “gaps.” • Respectful. You’ve got a great team of very smart and capable professionals who want to learn. Assume they can and give them the opportunity to provide feed- back on the process. • Transparent. Avoid forming teams who are the knowledge keepers. Once you have completed training on an issue, allow your staff to take ownership for staying up-to-date by providing them with access to payer and Medicare policies. Copyright CCH. All rights reserved. 3. http://www.ahima.org/topics/icd10 mediregs.com 13 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Payer Implications Parts of your ICD-10 readiness efforts to date have no doubt included a review of payer contracts. This extra time affords your organization the ability to capitalize on that work to focus on stop loss and carve-outs, new payment models (e.g., paid-for-performance, bundles) and to implement strategies to maximize revenues through renegotiating contract terms. As an organization begins to create an inventory of all existing contracts, it may be prudent to consider an online solution to efficiently and effectively manage contract information. The ability to manage contracts and relationships allow for a risk management and compliance program to organize and manage all contractual and arms-length relationships in your organization from a single location. A one-stop compliance program management tool makes it easy for organizations to closely monitor and track critical relationship activity and maintain detailed records that meet regulatory requirements. It may also be helpful to obtain accurate fee schedules specific to your region or provider. During the contract evaluation, assure that the following due diligence is performed: • Solidly understand payer relationships, including Medicare and all commercial payers. • Utilize patient data and informatics, and published fee schedules to negotiate optimal contracts. • Inventory anticipated future contracts. • Consolidate payer contract database. • Maintain good communication with payers. • Understand how payer systems integrate with internal systems. Once your evaluation and analysis is completed, update payer contracts to incorporate ICD-10 language. Given the timing of this delay, incorporation of ICD-10 requirements effective in October of 2014 may have already been included; therefore, be sure to include force majeure language in your payer contracts moving forward with provisions to address changes in governmental legislation. Don’t let a change outside of your control to impact your processes and bottom line. As mentioned related to vendors, end-to-end payer testing is critical. While testing may be pushed back with the recent implementation date change, do keep end-to-end testing on your radar. Update processes and re-educate as appropriate based on the lessons learned during testing as well. Copyright CCH. All rights reserved. mediregs.com While the industry has a tendency to fear the possibility of negative financial impact from the transition, many may find that forwardlooking strategies using ICD-10’s focus on capturing more granular detail may actually improve revenue streams in some areas. Consider that if analytics software reveals that a certain highly-used DRG poses potential risk for an organization under ICD-10, a number of strategies can be put into place to mitigate that risk. 14 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Minimizing Financial Risk The key to achieving fiscal success with ICD-10 is to minimize your financial risk. The recent delay in ICD-10 implementation not only provides more time to prepare, but also, unfortunately, leads to more money spent as the project expands to fill the time provided. But if you are smart about your expenses moving forward and focus your planning, you can understand your business today under ICD-9 as a core foundation for minimizing your financial risk while maximizing reimbursement moving forward. Take the extra time to evaluate your ICD-10 work plan, assure you are on the right track, and take the time to take additional steps to assure you have a successful transition. Re-evaluate the gap analysis performed in your organization. Look for potential lost revenue opportunities and don’t limit your attention to inpatients. Some opportunities of focus can be: • Missing technical (hospital)component for emergency department and bedside procedures; • Maintain and keep current your charge description master (CDM); • System issues (look at every component of the revenue cycle and assess its operational effectiveness); • Assess your denials under ICD-9, including what exists today and what will exist with ICD-10; and • Common denials typically relate to pre-authorization, medical necessity and lack of supportive documentation. It is important to note that external auditors are not going away. For example, the Recovery Audit National program reflects $3.8 billion in corrections for FY 2013. Since its’ inception in 2010, the RAC program’s total corrections equal $7.2 billion.4 Based on these statistics and as you set out to determine your highest risk areas, it would be wise to include the focus areas published by the Recovery Audit Contractors (RACs) over the last year. Additionally, assess your top 20% paid DRGs, top utilized DRGs and cases associated with medical necessity and/or other denial/re-bill issues. Copyright CCH. All rights reserved. 4. Medicare Fee-for-Service Recovery Audit Program National Program Corrections Q3 FY 2013, CMS mediregs.com Because ICD-10 is an organization-wide issue, the work an organization needs to do to prepare and sustain once ICD10 is implemented can be daunting. All organizations will need to change the way they currently do business under ICD-9 to be successful under ICD-10. 15 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely • • • For each of the risk areas, pull historical claims data and compare them to the medical records for those cases. Perform a self-assessment that is in line with a complex review; typical of a RAC. —— Confirm that the documentation supports the ICD-9 coding. —— Validate that the principal diagnosis was appropriately assigned. —— Confirm that the CC/MCC secondary diagnoses are well documented. —— Review Present On Admission coding and documentation as part of the process. Natively assign codes in ICD-10 as if it is post-implementation, and then confirm the ICD-10 to MS-DRG grouping logic to assess if payment is consistent. Reviews of this type provide the basis to help organizations understand current performance under ICD-9 and provide specific information about what is required to prepare for ICD-10. In a single review, you can glean important lessons regarding medical necessity, coding, documentation, DRG validation and other audit issues. As each organization assesses the risks associated with ICD-10, we have learned that it will have a major impact on the documentation expected from the clinicians and an even bigger effect on the coding staff in your organization. But because CMS has also reassigned combination of codes in ICD-10 to define diagnostic related groups (DRGs) for payment, a change in Medicare and commercial reimbursements is inevitable. It is vital for organizations to get a handle on the financial risks associated with ICD-10 and communicate the risks to the steering committees, to include the executive staff. Specifically, it will be prudent for every organization to understand how they will do business in ICD-9 and assess their financial risk as they transition to ICD-10. Copyright CCH. All rights reserved. mediregs.com 16 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Our Solutions Wolters Kluwer understands the challenges that small and large healthcare providers, payers and vendors face and has solutions to support your successful implementation of ICD-10. With over a decade of experience in medical terminology management, we have the in-depth knowledge around the critical healthcare IT challenges that you face, leading the industry with data normalization solutions, including software, content, and services that map, translate, update, and manage standard medical vocabularies and administrative codes. Confidently manage audit, risk, and drive compliance with our customized, scalable SaaS solutions created and supported by experts in healthcare audit, risk, compliance and reimbursement. And finally, ensure hyper-accurate procedure documentation with our award-winning computer-assisted coding solution. Risk Management ICD-10 Impact Analysis Of the many competing initiatives vying for providers’ time, money and attention, ICD-10 carries the largest risk to the financial health of a hospital. All reimbursement schemes for hospital inpatient procedures currently based on ICD-9 will be directly affected by the ICD-10 transition. New Health Analytics and Wolters Kluwer have collaborated to develop the ICD-10 Payment Impact Analysis solution to help providers understand and gain insight on how ICD-10 payment will impact the organization’s bottom line. Leveraging existing state and commercial databases, the revenue impact is determined by MDC, MS-DRG and major service line to give organizations an online view of their claims data for a recent period of time translated into ICD-10 with Medicare expected payment data applied. Information Systems & Data Sets Health Language Enterprise Terminology Management Platform The Health Language Enterprise Terminology Management Platform provides providers, payers and vendors with the software, content, and consulting solutions that map, translate, update, and manage standard and enhanced clinical terminologies on an enterprise scale—enabling the information liquidity required to support some of healthcare’s toughest challenges, such as meaningful use compliance, ICD-10 conversion, population health management, analytics, ACOs, and semantic interoperability among systems. To ensure ICD-10 readiness, healthcare organizations are encouraged to leverage Health Language solutions and expertise to support the key aspects of transition planning: protecting the revenue cycle, ensuring a clinically complete translation, preparing for post ICD-10 updates, and optimizing clinical workflow. mediregs.com 17 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Data Sets Healthcare organizations, providers, consultants, life science companies, payers and software vendors struggle to understand and keep up-to-date with complex Medicare expected payment information. Analyzing published CMS information, which can be confusing, incomplete and difficult to aggregate into consistent format, is a major burden that eats through staff time. And, once they have the data in hand, they still have to calculate provider-specific or location-specific rates. Medicare Payment System Data Files, powered by New Health Analytics, are accurate, consistent and versioned provider-specific data sets packaged “to go”—for reporting, analysis and to populate your software and IT systems with the essential data for projecting financial outcomes and strategic planning. Available data files include: Inpatient PPS, Outpatient PPS, Ambulatory Surgical Center Fee Schedule, Physician Fee Schedule, Clinical Laboratory Diagnostic Fee Schedule, Durable Medical Equipment Fee Schedule, and Long Term Care Hospital PPS. Policy and Procedure Revisions ComplyTrack Document & Policy Manager Part of your Clinical Documentation Improvement and Education Program will include revising and introducing new policy documents for staff members. Use the ComplyTrack Document & Policy Manager to provide staff with an easy-to-access location for policies and version tracking with a streamlined revision and approval process. It can even be integrated with links to primary source regulations within any of our research products, such as the Coding Suite. For your Medical Policy Documents, you can work concurrently in the ICD-10 Explorer and Document & Policy Manager to translate your policies from ICD-9 to ICD-10, and include links to automatically updated manuals, LCDs, and coding/payment tools within your subscription. Coding Suite With the ever-increasing pace of health care regulatory change that includes the ongoing adoption of ICD-10, it’s harder than ever for coding and reimbursement professionals to ensure proper code assignment up front. In order to minimize claim denials and secure your bottom line, you need quick, easy access to the comprehensive information and tools that are necessary for effective revenue cycle management. Our Coding Suite, designed specifically for health care professionals, combines expert legal and regulatory information, web-enabled research, and the specialized content of the CCH Medicare & Medicaid Guide to offer the most robust coding, reimbursement, and compliance solution available today. Search on multiple terms simultaneously or utilize automatic alerts to inform you of new documents containing your targeted search terms. Name your stored searches after the related internal policy to prompt you to review new information and to point you to any necessary updates. mediregs.com 18 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Coding ICD-10 Resource Center ProVation MD – Structured Reporting and Coding Software ProVation MD is the only dedicated structured reporting and coding solution that provides clinically relevant, intuitive software that ensures hyper-accurate procedure documentation. Covering 11 medical specialties, including Cardiology, Gastroenterology and Orthopedics, ProVation MD allows physicians to efficiently capture robust detail from even the most complex procedures, and then automatically generates clear, complete procedure notes and appropriate reimbursement codes—quickly, easily and without dictation. By automatically applying the reimbursement codes and disseminating critical procedural information, ProVation MD ensures appropriate payment, reduces costs and streamlines quality reporting while improving clinical communication and care coordination. Built for health care providers and payers who need intense focus on ICD-10, the ICD-10 Resource Center is a complete, easy-to-use solution for coding staff across the organization. ProVation Coding Plus A companion to ProVation MD, ProVation Coding Plus provides coding, coverage, payment information and guidance for surgical coders, enabling them to confirm the accuracy of reimbursement, utilize primary source material to confirm accurate code selection, confirm medical necessity for both local and national coverage determinations, assess code edits prior to claim submission (national correct coding initiatives or NCCI), and keep up to date on ever-changing Medicare rules and guidelines. ICD-10-CM Electronic Codebook Get to know the new ICD-10 diagnosis system with this comprehensive, up-to-date codebook that connects ICD-10 coding to Medicare rules, with: • Comprehensive with guidelines and indexes; • Easy to navigate tabular pages; and • Additional Wolters Kluwer coding, coverage, reimbursement and compliance content and tools. ICD-10-PCS Electronic Codebook Master the new ICD-10 procedure coding system with this comprehensive, up-to-date codebook that connects to MS-DRG coding resources and Medicare rules, with: • Easy to use tables that demystify procedure code assignment; • Comprehensive guidelines, index, and reference manual; and • Connection to companion MS-DRG/ICD-10 Coding Manual. ICD-10 Explorer Search for and compare ICD-9 and ICD-10 clinical terminology and related codes using GEMs in one simple tool! • Interactive interface provides simple, user-friendly approach for training, translation and professional coding. • Simultaneously search in both I-9 and I-10 for direct comparison. • Instantly map any code using GEMs forward & backward mapping and CMS reimbursement mapping. • Connect instantly to related documents, coding instructions and guidelines. ICD-10 Regulatory Resources, Data and Archives Find all the resources necessary within the solution, including coding, coverage, payment and regulatory compliance resources for ICD-10 such as: • Download Center, CMS notifications and training materials; • HHS regulatory requirements for ICD-10; • Payer contractors related to ICD-10; and • CMS Manuals and policies related to ICD-10. mediregs.com 19 WHITE PAPER ICD-10: The Gift of Time… and How to Spend It Wisely Summary Of the many competing initiatives vying for providers’ time, money and attention, ICD-10 carries the largest risk to the financial health of a hospital. If your organization is not ready to submit clean claims by the new deadline, it will be subject to multiple cascading financial risks, including enormous direct impact to the timing and amount of your reimbursements and audit outcomes and, thus, your bottom line. And if CMS sticks with its original position to carry out no end-to-end testing, you can add the strong likelihood of an exponential increase in post-deadline RAC audit activity for years following the initial transition. Use the extra gift of time you have wisely to ensure that your team is collaborating across the enterprise and that your systems teams, your vendors, your documentation, your payers, your physicians and reimbursement professionals are fully engaged and completely prepared. Through the prudent combination of education, process improvement and utilization of technology you can be prepared for the change and will minimize your risk. About Wolters Kluwer Wolters Kluwer is a market-leading global information services company. Professionals in the areas of legal, business, tax, accounting, finance, audit, risk, compliance, and healthcare rely on Wolters Kluwer’s leading, information-enabled tools and solutions to manage their business efficiently, deliver results to their clients, and succeed in an ever more dynamic world. Copyright CCH. All rights reserved. mediregs.com