Study Says "Higher Costs Expected for ICD-10 Implementation"

A new study questions cost projections for the transition from ICD-9 coding to ICD-10 within the CMS proposed timeframe of October 1, 2011. The ICD-10 Coalition, is seeking an extension of the timeframe due to the complexity of transition and cost estimates for implementation that are potentially higher than expected. The study by Nachimson Advisors for the Coalition estimates costs at $83,290 for a small practice to $2.7 million for a large practice. However, others, including the American Hospital Association support the rule. They contend that if implementation doesn’t occur by 2011, people will continue to buy products that cannot handle ICD-10, making the transition more difficult. The upgrade to ICD-10 is designed to  allow for more accurate coding of mental health and substance use disorders, which will likely have an effect on reimbursements for M/SU diagnoses. Concerns remain, however, about the lack of concordance between ICD and DSM for some diagnoses.