U.S. Department of Health & Human Services
Improving the health, safety, and well-being of America
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U.S. Department of Health & Human Services |
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Improving the health, safety, and well-being of America |
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FOR IMMEDIATE RELEASE |
Contact: HHS Press Office |
Most Medicare providers are on track in preparing for the Year 2000, but others need to take action soon or they may have trouble handling medical records, submitting bills and getting paid by the Medicare program, according to a survey issued today by the HHS Inspector General.
About half of the providers surveyed say that their billing and medical records systems are already Y2K compliant. Of those who are not currently ready, more than 90 percent of hospitals and 70 to 84 percent of other provider groups responding to the survey believe their billing systems will be Y2K compliant by Dec. 31, according to the survey, "Y2K Readiness of Medicare Providers."
HHS Inspector General June Gibbs Brown said the survey was conducted in cooperation with national associations of health care providers to help gauge providers' state of readiness for possible computer system glitches stemming from the coming of the Year 2000. The survey included doctors, hospitals, nursing homes, home health agencies, and durable medical equipment providers.
"The government's Medicare systems will be ready for the Year 2000. But this survey shows that a significant number of providers still have work to do to get ready for Jan.1, and they need to focus now," said HHS Deputy Secretary Kevin Thurm. "We are working with providers throughout the health care industry to help them do what they need to do to be Y2K compliant and to ensure continuity of care."
HCFA reports that, as of Feb. 28, 1999, all of its internal systems have been certified as compliant. In addition, all Medicare contractors, private insurance companies that process and pay Medicare claims, will be Y2K compliant before this summer.
But Inspector General Brown said the survey shows that considerable work needs to be done by providers to assure that they will be able to bill Medicare and insurance companies for the services they provide. The survey results also found that less than 20 percent of respondents had tested data exchanges between their systems and their external vendors. Less than half of respondents have so far developed a contingency plan in preparation for possible Y2K-related system failures.
"This survey makes it clear that providers need to take steps in their own self-interest to be sure their computer systems will be able to successfully submit claims for reimbursement," said Brown.
Of the 5,000 providers surveyed from December 1998 through February 1999, the Inspector General's office received responses from 49 percent of hospitals, 41 percent of nursing facilities, 27 percent of home health agencies, 26 percent of durable medical equipment providers, and 22 percent of physicians.
"Y2K readiness is the responsibility of each individual provider," said Brown. "We hope our survey will help them identify impediments and make a smooth transition to the Year 2000."
To help spur providers to get their systems ready, HCFA on April 5 will stop accepting electronic claims that do not include full "8-digit dates." The change will help providers understand what they need to do to prepare their computer systems, says HCFA Administrator Nancy-Ann DeParle.
HCFA has also taken other steps to help providers. In January, HCFA Administrator DeParle wrote directly to the 1.25 million Medicare providers -- the largest such mailing in Medicare history -- urging them to assess their Y2K status and to begin preparing if they had not done so already. In addition, between March 29 and April 2, HCFA will sponsor half day conferences on "What You Can Do To Be Ready" in Baltimore, Washington, Boston, New York, Philadelphia, Atlanta, Chicago, Dallas, Kansas City, Denver, San Francisco, and Seattle. These seminars will coincide with the Small Business Administration's Y2K Action Week.
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