lessons learned from the 5010 conversion to take into icd-10 a clearinghouse perspective

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Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective Frank Carozzi Business Development Quadax, Incorporated

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Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective Frank Carozzi Business Development Quadax , Incorporated. Orioles on the road, Thursday September 4 th , 2014. Who’s excited about ICD-10??!!. About Quadax , Inc. Privately-owned 500 employees - PowerPoint PPT Presentation

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Page 1: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

Lessons Learned from the 5010 Conversion to take into ICD-10

A Clearinghouse perspective

Frank CarozziBusiness DevelopmentQuadax, Incorporated

Page 3: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

•Orioles on the road, Thursday September 4th, 2014

Page 4: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

Who’s excited about ICD-10??!!

Page 5: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

About Quadax, Inc.• Privately-owned• 500 employees• Established 1973• 250 hospital/ hospital

system clients—ranging from 1,000 bed systems to 15 bed critical access hospitals

• Based in Ohio

Page 6: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective
Page 7: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

What will I talk about?•The plan going into 5010•The results of the conversion to 5010

compared with the plan•Lessons learned from 5010•The plan going into ICD-10•Actions needed

Page 8: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

Original 5010 Planned Timeline• Jan. 2009- Begin Gap Analysis,

design and development• Jan. 2010- Begin internal testing

for HIPAA 5010• Dec. 2010- Achieve Level 1

Compliance by completing internal testing and can send/receive compliant transactions

• Jan. 2011- Begin external testing with trading partners (parallel processing of 4010/5010) and move to production.

• Jan. 2012- 5010 compliance date for all covered entities

• Oct. 2013- Compliance date for ICD-10

Page 9: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

CMS Timeline

Page 10: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

• “If you want to make God laugh, tell him about your plans.”– Woody Allen

Page 11: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

5010 Actual versus Plan•November 17, 2011- CMS announces a

90-day grace period for 5010 compliance.•March 15, 2012- CMS announces a new

date for compliance enforcement of 5010, July 1, 2012.

Page 12: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

5010 ActualVendor Compliance• Dec. 2011 50% • April 2012 75%

Payer Compliance• Dec. 2011 30% rep. 15% volume• Feb. 2012 80% rep. 67% volume• April 2012 94% rep. 75% volume

*Sometime after that to achieve 100% effective compliance.

Page 13: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

The road to ICD-10 Compliance

Page 14: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

Workgroup for Electronic Data Interchange (WEDI)•Survey of :

▫778 hospital providers

▫109 payers

▫87 vendors

Page 15: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

WEDI Survey- Providers•20% have not started education or training•55% have not started training their Coding Staff•47% have not started document improvement

education to their medical staff•40% have not started training their coding staff

on ICD-10 clinical modification•31% not planning to duel code before Oct. 1,

2014•25% will begin testing in Jan. 2014•13% will begin testing in July, 2014 or later

Page 16: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

WEDI Survey- Providers•Top Five Obstacles:

▫1. Staffing▫2. Budget▫3. Competing priorities▫4. Vendor readiness▫5. IT impacts

Page 17: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

WEDI Survey -Payers• Impact assessment and

gap analysis

▫ 50% have completed assessments

▫ 25% are at 75% complete

Impact Assessment

Complete75% Done< 75% Done

Page 18: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

WEDI Survey- Payers, cont.•Internal business process design and

development▫33% are done or almost done

▫Very few indicate that they have not started

Page 19: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

WEDI Survey- Payers, cont.•Testing

▫75% will start internal testing in 2013

▫50% will start external testing with partners in 2013

Page 20: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

WEDI Survey- Payers, cont.•Top Three Reasons for Delays or

Obstacles▫1. Competing internal priorities▫2. Staffing issues▫3. Other regulatory mandates

Page 21: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

WEDI Survey- Payers, cont.•ICD-10 Claims Processing

▫66% plan on direct ICD-10 processing▫25% plan on using combination direct

processing and crosswalk▫Very few plan on using crosswalk

exclusively

Page 22: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

Claims Management system Readiness•Existence of interpretive billing edits•Complexity of the logic•Complete understanding of payers•Scalability of rules•Functionality of eligibility and benefit

edits

Page 23: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

ICD-10 The Plan•5010 was HUGE with all parties –

provider, clearinghouse and payer.•We see what’s coming with ICD-10 is BIG

with the provider and the payers. • It is more of a format change for

clearinghouses and that work has essentially been accomplished.

Page 24: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

ICD-10 The Plan•Q: What are the expected system

changes to accommodate ICD‐10?

•A: Increase in the number and length of Diagnosis Code fields; use of the Diagnosis Qualifier field (FL66); edit

• logic updated to accommodate ICD‐10 codes; increase in Diagnosis Code database table size.

Page 25: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

ICD-10 The Plan• Q: Will my clearinghouse need to

accommodate both the ICD‐9 and ICD‐10 code sets in a dual use testing strategy? What about after ICD-10 implementation in production?

• A: Yes. But because ICD‐9 and ICD‐10 codes cannot be used on the same claim, it is incumbent on providers to specify which code set is being used on each individual claim via the Diagnosis Qualifier field (FL66).

Page 26: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

ICD-10 The Plan•Q: How will ICD‐9 ‘legacy data’ be

accommodated?

• A: Quadax and, I presume, all clearinghouses will have to prohibit ICD‐9 codes on claims with dates of service 10/01/14 and after, but allow them on claims with dates of service before the transition date and have editing modified in conjunction with Payer readiness to prohibit/allow ICD‐9 or ICD-10 codes.

Page 27: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

ICD-10 Questions to ask Vendors•General•1. Do you have an ICD-10 plan in place?•2. Has development begun or is it

finished?•3. When were products first able to

accommodate 5010?•4. How many 5010 updates were

necessary following the general release?

Page 28: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

ICD-10 Questions to ask Vendors•System Updates•1. What is the timeline?•2. When will data values be available for

use?•3. What version numbers?•4. Purchase additional hardware or other

IT services?

Page 29: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

ICD-10 Questions to ask Vendors•Cost•1. Update Costs covered in Maintenance

Plan?•2. Cost of Necessary Software updates?•3. Modify the contract?•4. Cost of features not part of

Maintenance Plan?

Page 30: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

ICD-10 Questions to ask Vendors•Testing•1. Types of testing services and

functionality?•2. When available?•3. Pre-release testing prior to updates?•4. Tested with HIS and EMR- vice-versa?•5. Other systems?•6. Automated or Self-Administered?•7. Communication?

Page 31: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

Lessons Learned•5010 “ready” was meaningless•Successful testing was in the eye of the

beholder•Go-Live date was payer specific•It’s not just a “technical” problem•Major problems were not anticipated•Few payers currently offer eligibility (271)

or claims status (277)

Page 32: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

Actions Needed•Ask for Timeline and Follow-up

•Don’t Underestimate Past Experience

•Listen

•Begin Communication Early

Page 33: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

ICD-10 Conversion Timeline

Page 34: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

I hear there’s a new ICD-10 Code for carpal tunnel syndrome caused by clicking too many times in a PowerPoint presentation.

Page 35: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

• “Plans are nothing; Planning is everything.”

• - General Dwight D. Eisenhower

Page 36: Lessons Learned from the 5010 Conversion to take into ICD-10 A Clearinghouse perspective

Questions?