presented by: day egusquiza, president ar systems, inc. (w/ karen kvarfordt, rhia, ahima icd-10...

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Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc.

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Page 1: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Presented by:

Day Egusquiza, President

AR Systems, Inc.

(W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer)

President, DiagnosisPlus, Inc.

Page 2: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

WHO ?What ?When ?Why ?How ?

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Page 3: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

It’s on your doorstep! The biggest change to happen in Health

Information Management and Revenue Cycle in more than 30 years.

Preparation is the KEY!Will you be ready?

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Page 4: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

WHO (World Health Organization) owns & publishes ICD (International Classification of Diseases).

WHO endorsed ICD-10 in 1990; members began using ICD-10 or modifications in 1994.

U.S. is only industrialized country not using ICD-10, for morbidity reporting (coding diseases, illnesses, injuries in a healthcare setting).

The U.S. has used ICD-10 for mortality reporting (coding of death certificates by Vital Statistics offices) since 1999.

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Page 5: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

United Kingdom (1995) Denmark, Finland, Iceland, Norway, Sweden (1994 –

1997) France (1997) Australia (1998) Belgium (1999) Germany (2000) Canada (2001) U.S. (2015) U.S. (2015) ((ReimbursementReimbursement + + Case Mix + HIPAA Case Mix + HIPAA

Standard Transaction, 2003Standard Transaction, 2003)) That’s why!That’s why!

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Page 6: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

ICD-9-CM Coordination and Maintenance Committee is made of 4 parties:

◦National Center for Health Statistics (NCHS) – responsible for diagnoses (Volumes 1 & 2)

◦Centers for Medicare and Medicaid Services (CMS) – responsible for procedures (Volume 3)

◦American Hospital Association (AHA)◦American Health Information Management Association

(AHIMA)

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Page 7: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

What is the benefit to the provider?What is the benefit to the provider?◦Dramatic improvement in the assignment of costs to Dramatic improvement in the assignment of costs to

procedures performed.procedures performed. ICD-10 will allow us to develop meaningful estimates

about what a disease state or a procedure costs us, while ICD-9 is limited in what it can do in this regard.

◦ Identify opportunities to avoid cost & improve lives.Identify opportunities to avoid cost & improve lives. Additional information in an ICD-10 diagnosis code

includes severity and specific comorbidity, but it can also include information about demographics and some of the underlying reasons for the diagnosis.

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Page 8: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Share higher-quality data with other health Share higher-quality data with other health care providers.care providers.◦ICD-10 increases the amount of “specificspecific”

information in every diagnosis code and makes this more valuable to other providers.

For example, ICD-9 has a code for laceration of an artery.

ICD-10 lets you know if that artery was in someone’s finger or in their heart.

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Page 9: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Reimbursements will better align Reimbursements will better align with activity & cost. with activity & cost. ◦Payers will reimburse severe & complex cases better and simple cases at lower rates.How? By the diagnosis codesBy the diagnosis codes!

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Page 10: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Imagine you had a patient who was noncompliant with their medical therapy. In ICD-9, the only code we have available is V15.81 (personal history of noncompliance with medical treatment).

Is the patient noncompliant because of their own personal reason? Or something else?

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Page 11: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Z9111 (Patient’s noncompliance with dietary regimen) Z91120 (Patient's intentional underdosing of medication regimen due to financial hardship) Z91128 (Patient’s intentional underdosing of medication regimen for other reason) Z91130 (Patient’s unintentional underdosing of medication regimen due to age-related debility) Z91138 (Patient’s unintentional underdosing of medication regimen for other reason)

Shows whether or not the patient’s noncompliance was Shows whether or not the patient’s noncompliance was intentional, but also identifies if the patient needs some form intentional, but also identifies if the patient needs some form

of assistance from social services, etc.of assistance from social services, etc.

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Page 12: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

What is ICD-10-CM What is ICD-10-CM and and

ICD-10-PCS?ICD-10-PCS?

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Page 13: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9 standard diagnostic classification system.

Volumes 1 & 2 (diagnosis codes) applies to ALL settings.

Volume 3 (procedure codes) applies to inpatient hospital only.

ICD-9-CM diagnosis codes are required under HIPAA for uniform claim submission (2003).

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Page 14: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Department of Health and Human Services (HHS) mandated that HIPAA covered entities must update medical medical coding setscoding sets, effective October 1, 2015October 1, 2015.

Diagnosis codeDiagnosis code set changes from ICD-9-CMICD-9-CM to ICD-10-CMICD-10-CM. Hospital inpatientinpatient procedureprocedure code set changes from ICD-9-CMICD-9-CM (Volume 3) to ICD-10-PCSICD-10-PCS. No impact on CPT and/or HCPCS codes. Yeah!No impact on CPT and/or HCPCS codes. Yeah!

We will still report CPT codes for all outpatient We will still report CPT codes for all outpatient procedures/services & physician hospital visits to procedures/services & physician hospital visits to

Observation and Inpatients (E&Ms).Observation and Inpatients (E&Ms).

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Page 15: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

ICD-10-CM (ICD-10-CM (DiagnosesDiagnoses))◦Will be used by allall hospitals, providers, clinics,

lab, radiology, psych, rehab, nursing homes, etc. ICD-10-PCS (ICD-10-PCS (ProceduresProcedures))◦Will be used onlyonly for hospital claims for inpatientinpatient

hospital procedures hospital procedures CPT/HCPCS – No change! CPT/HCPCS – No change! ◦Procedures for Hospital Outpatients, Physician

Visits, Lab and Radiology Outpatients, etc.

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Page 16: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

October 1, 2015 October 1, 2015 – Compliance date for implementation of ICD-10-CM (diagnoses) and ICD-10-PCS (inpatient procedures).

CMS initially stated that there would be nono grace period. Then why the 1 year delay?

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Page 17: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

CMS clarifies policy for processing split claims for hospital encounters that span the ICD-10 implementation date.◦ MLN (Medical Learning Network) Matters Number: SE1325MLN (Medical Learning Network) Matters Number: SE1325

Split ClaimsSplit Claims◦Require providers split the claim so all ICD-9 codes ICD-9 codes remain

on one claim with Date of Service (DOS) through SeptemberSeptember 30, 201530, 2015, and all ICD-10 codes ICD-10 codes placed on the other claim with DOS beginning October 1, 2015 and laterOctober 1, 2015 and later.

◦CMS announces end to end testing, beginning Jan 2015.

◦ Same guidance for Same guidance for InpatientInpatient and and Outpatient Outpatient encounters!encounters!

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Page 18: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Non-HIM Uses For ICD-9-CM-Non-HIM Uses For ICD-9-CM-Preparing for ICD-10-CM – as Preparing for ICD-10-CM – as we move from 15,000 codes to we move from 15,000 codes to

over 70,000 codesover 70,000 codes

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Page 19: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Along with focusing on enhanced documentation to support inpt level of care, the expanded narrative to support ICD 10 conversion continues the story.

Support team to make this happen: Integrated CDI with feedback from codersPFS /denial ‘busters’ with feedback to CDIPayer new edits –PFS monitors and advisesIT with ability to test, submit, and maintain both ICD 9 and ICD 10 post go live.Eyes in the record – nursing/24-7.

RAC 2014 19

Page 20: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Rollout ‘monthly dedicated specialty specific’ audit and training.

EX) May is ER month. Coders dual code an identified sample of ER claims. Identify ‘at risk’ documentation by provider. Turn into ‘easy to implement documentation.

EX) If the facility has a CDI team, work cooperatively with the coding team to ‘coach/que’ the ER providers thru their month.

EX) Do an month end dual coding – show improvement or challenges.

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Page 21: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Physician dictates, hospital coders code, UB is created.

NEW: Why not share the codes with the providers who are attached to the account? Why repeat the same coding process in the office?

NEW: Brown bag coding luncheons with the provider offices. Office brings samples to code, hospital coders code while teaching ICD 10 concepts. (TX: Lunch & Learn weekly)

NEW: Hospital becomes the outsourcing company to assist small practices with coding.

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Page 22: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Scheduling –precerts, eligibility. Claims submission with scrubber –both

ICD 9 and ICD 10 codes ( Min-1 yr ability to rebill, do duality with IT systems.)

Medical necessity CPT codes – software, manual processes, cheat sheets

Recurring accounts – will need new precerts & recoded after 10-1-2015

Payer acceptance of new ICD 10 codes PLUS ICD 9 codes – 2 batches

Payer contract language – Dx codes Payer remark codes/denial codes CDM – Hardcoded RT/LT needs to

match with the soft coded RT/LT ICD10 Trauma/Tumor registry - translated All IT systems within the organization

837/835 HIPAA transaction sets – new for ICD 10 locators

Quality of care indicators – translated P4P indicators/Outcome Measures –

translated Decision Support, utilization patterns,

benchmarking – translated Medical care review – by provider, by dx,

by LOS New business plan research/future

healthcare trends – translated Monitoring and analyzing the incidence

of disease & other health problems –translated & new

Embedded dx attached to CPT codes Population Health History vs Current Revise forms to include new ICD 10

codes.

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Page 23: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

1st point of contact =provider offices/dx to get pre-certifications with payers.

Pre-auth with payers = internal staff, UR Medically necessary edit = diagnosis to screen diagnosis

against CPT tests to determine if Medicare or other payers will allow. ABN completed with Medicare pts prior to the test.

Internal IT, scrubber company, payer’s IT systems = prior to go live and post go live.

Concern: Worker’s Comp and Liability not covered entities/HIPAA Standard Transaction. Maintain both ICD 9 & ICD10??

RAC 2014 23

Page 24: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Lab, Chemo, Imaging, Cardiology, Specialty services = all usually require “medically necessary payer screening” prior to the procedure. Cheat sheets = gone!

Doctor offices = new encounter forms. Rehab = Work comp pre certs. (? ICD 9 & 10) PFS = new rejections, new return to provider edits,

potential new denials HIM/the clean up crew = all payer rejections due to

coding, internal issues, more? IT decision support = historical to current codes Others? = any area tracking by Dx code…more!

RAC 2014 24

Page 25: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Beyond the coders… PFS leadership as payers may reject based on ICD -10

coding and medical necessary codes & denial software. PFS leadership and contracting to ensure contracts can

accept both ICD-9 and ICD-10 on the UBs post go live. UR and all care mgt as payers will need to be able to do

pre-certifications and concurrent review with ICD-10. Decision support and all areas using ICD-9/10 coding for

tracking, reporting, etc. (Trauma registry, Tumor registry, outcome comparisons, contracting, etc.).

IT leadership must be involved to ensure all impacted areas are ready. A team leader or leaders are identified.

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Page 26: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

UB submissions with ICD-9 and ICD-10 - conversion dates

Denials with new reasons –as ICD-10 is far more specific

Contract language that addresses ICD-10 inclusions/exclusions

Claim scrubbers/payer scrubbers – ABN issues (LCD/NDC dx codes), ‘if ‘ rules, edits

Pre-authorization process/coverage WC and Liability are not subject to HIPAA

standard transactions. Will they convert?

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Page 27: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Will they deny ‘unspecified” dx? How many digits will they require to have a ‘pre

authorization ‘ match? Testing – test pt type, create claim, thru scrubber,

to payer to payment. When start? Post go live? Accept DOS with ICD 9 after go live? If delayed, notify CMS/HIPAA Standard

Transaction 2003. Track and trend all payer issues – report to hospital

association.

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Page 28: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

The Challenges… What? For each Lab NCD, the ICD-9-CM codes and descriptions

will have to be translated to ICD-10-CM versions. When? ◦ Prepare ICD-10-CM versions for full ICD-10-CM implementation

in 2015

◦HEY – look at MLN Matters MM8197 3-15-13◦ “ICD conversion from ICD 9 to related code infrastructure

of the Medicare shared systems as they relate to CMS’ NCDs.” (Watch for more on this!)

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Page 29: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Translate all ICD-9-CM codes and descriptors in each Lab NCD’s table of covered codes to the ICD-10-CM equivalent(s).

Provide these translated tables to the CMS contractor, so that the tables can be incorporated into the ‘codelist spreadsheet’ which will be processed for use by the shared systems for claims processing. (update 2/13-NCDs available)

TESTING UPDATE: Watch for updates! (CMS announced end to end to begin in Jan 2015) Other payers?

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Page 30: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Each MAC reported their success with testing. CMS reported a 76-87% acceptance rate during the week of testing.

CMS reported more than 500 providers, suppliers, billing companies, and clearinghouses participated in the Nov round of testing.

While providers are welcome to submit acknowledgement test claims anytime, during the Nov testing week, testers submitted almost 13,700 claims.

Tested with a valid ICD-10 dx that matched the DOS, National Provider Identifier/NPI and an ICD-10 companion qualifier code to allow for processing of claims. Majority of physician/professional claims rejections were related to an invalid NPI.

Testers intentionally included errors in their claims to make sure the claim rejected, a process referred to as ‘negative testing.”

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Page 31: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Will payers, vendors (claim submission and scrubber) and other IT systems be able to handle ICD-9-CM as well as ICD-10-CM and ICD-10-PCS at the same time?

Rebills of pre-conversion, medical necessity software, scrubbers, ensuring all payers are ready to convert AND test with each payer = critical to the successful conversion.

P.S. Don’t forget all payers (Medicaid too! Funded to keep both ICD 9 and ICD 10 live?)

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Page 32: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Make a master list of all vendors who currently support any ICD-9 activity. (Think Y2K)

Look at all items /ordering tools where ICD-9 codes are present. Need reviewed and revised◦ Lab requisitions◦Online ordering of services that also requests ICD-9

codes◦Physician super bills/encounter forms with pre-printed

ICD-9 codes◦Dept specific ‘cheat sheets’ for covered dx. (Yep we

know you have them!)

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Page 33: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

3M or other encoder Main frame /main IT system Radiology-doc billing, radiology’s

own system Clearing house/claims Hospital employed doctor’s

software for billing SNF/RUG software for grouper HH/HHRG software for grouper Lab – pathology doc billing, lab’s

own system Internal electronic medical record

used for coding Software used for Trauma &

Tumor registry

Decision support Scheduling software All tied Medical Necessity

software in different areas – main frame, bolt on software, individual areas screening

Infection Control software Cardiology – EKG system Itemized statements with dx as

needed by the payer/pt Clinical quality reporting software Cheat sheets in each dept! OR software Occupational Med software

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Page 34: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Diagnosis CodingDiagnosis Coding(ICD-10-CM)(ICD-10-CM)

Building a codeBuilding a code

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Page 35: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

ICD-9-CMICD-9-CM

◦ 3 - 53 - 5 digits or characters ◦ 1st character is numeric ornumeric or

alphaalpha (E or V codes) ◦ 22ndnd – 5 – 5thth characters are

numericnumeric◦ Decimal placed after the first

3 characters◦ 1717 Chapters and “V” & “E”

codes are ‘supplementalsupplemental’

◦ 14,00014,000 diagnosis codes

ICD-10-CMICD-10-CM

◦ 3 - 73 - 7 digits or characters◦ 1st character is alphaalpha (all

letters used except “U”)◦ 22ndnd – 7 – 7thth characters can be

alpha and/or numericalpha and/or numeric◦ Decimal placed after the first

3 characters (the same!)◦ 2121 Chapters and “V” & “E”

codes are ‘notnot’’ supplemental

◦ 69,000+69,000+ diagnosis codes

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Page 36: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

AA Initial encounter

DD Subsequent encounter

QQ Sequelae (disease progression)

Coders will need to look for the episode of care. Is this the patient’s 1st visit for treatment or is it for routine follow-up? Is it clearly documented in the medical record?

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Page 37: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

X X XX X X X X XX X X XX

CategoryEtiology, anatomic site, severity

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Extension

Page 38: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

I10 Essential (primary) hypertension S01.02xxAA Laceration with foreign body of scalp, initialinitial

encounterencounter S01.02xxDD Laceration with foreign body of scalp,

subsequent encountersubsequent encounter S02.2xxxxAA Fracture of nasal bones, initial encounterinitial encounter for

closed fracture H65.011 Acute serous otitis media, rightright ear (CDM too)

H65.022 Acute serous otitis media, leftleft ear H65.033 Acute serous otitis media, bilateralbilateral

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Page 39: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

On any given day, anything can happen!On any given day, anything can happen!

W17.82xA Fall from (out of) grocery cart, initial encounterV94.4xxA Injury to barefoot water-skier, initial encounterW61.43xA Pecked by turkey, initial encounterY93.C2 Activity, handheld interactive electronic device, i.e., cellular phone Are we querying providers? Who wants it -payers?Have internal discussions, payer research, and make

final decision.

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Page 40: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Greater “specificity and detail” in all diagnosis codes!◦ But…is there supporting physician documentation in the But…is there supporting physician documentation in the

medical record?medical record? 34,250 (50%) of all ICD-10-CM codes are related to

the musculoskeletal system 17,045 (25%) of all ICD-10-CM codes are related to

fractures◦ 10,582 fracture codes will distinguish ‘right’ vs. ‘left’

25,00025,000 (36%) of all ICD-10-CM diagnosis codes will now distinguish right vs. left

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Page 41: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

CMS has created GEMs (General Equivalence Mappings) to assist hospitals with cross walking ICD-9-CM ►ICD-10-CM/PCS “forward mapping” & ICD-10-CM/PCS ◄ ICD-9-CM “backward mapping”. The correlation between the 2 code sets for some codes is fairly close, but not a straight correlation for others, i.e. OB, etc.

Not always 1 to 11 to 1 crosswalk from ICD-9-CM to ICD-10-CM (www.cms.gov/ICD10/11b15_2013_ICD10PCS.asp)

Available on CMS’s website

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Page 42: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

ICD-9-CM Code Diagnosis ICD-10-CM CodeV20.2 Routine infant or child examination Z00.129 (Encounter for routine child exam without

abnormal findings). Z00.121 (Encounter for routine child exam with abnormal findings). “Use additional

code(s) to identify abnormal findings”.

250.00 DM w/o complications, type II or unspecified E11.9 (Type II DM without complications)

V04.81 Need for prophylactic vaccination and inoculation Z23 (Encounter for immunization). “At this time in ICD-10-CM there is only one code for

immunizations”.

401.1 Hypertension, benign I10 (Essential [primary] hypertension). “ICD-10-CM does not differentiate between hypertension that is controlled or uncontrolled, benign or malignant and

there is only one code”.

427.31 Atrial fibrillation I48.0 (Atrial fibrillation)I48.1 (Atrial flutter)

786.50 Chest pain, unspecified R07.0 (Chest pain, unspecified). “ICD-10-CM expands upon chest pain symptoms and

unspecified code may no longer be necessary”.

465.9 URI J06.9 (Acute upper respiratory infection, unspecified)

724.2 Lumbago M54.5 (Low back pain)

466.0 Bronchitis, acute J20.0 (Acute bronchitis, unspecified). “ICD-10-CM includes 10 choices for acute bronchitis”.

729.5 Limb pain M79.604 (Pain in right leg)

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Page 43: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

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Page 44: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

A charactercharacter is a stable, standardized code component◦Holds a fixed place in the code◦Retains its meaning across a range of codes

A valuevalue is an individual unit defined for each characterSection Body Root Body Approach Device Qualifier

System Operation Part

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Page 45: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

This 44-year-old male patient is known to have diverticulitis of the colon. He has noticed melena occasionally for the past week. The initial impression was that this is acute bleeding from diverticulitis. Patient was scheduled for colonoscopy. Colonoscopy identified the cause of the bleeding to be angiodysplasia of the ascending colon.

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Page 46: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

K55.21 Angiodysplasia of colon with hemorrhage (569.85)

K57.32 Diverticulitis of large intestine without perforation or abscess without

bleeding (562.11)

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Page 47: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

0DJD8ZZ0DJD8ZZ Inspection of Lower Intestinal Tract, via Natural or

Artificial Opening Endoscopic (45.23)

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Page 48: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

What Will ICD-10 Cost?What Will ICD-10 Cost?

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Page 49: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

CMS estimates cost to the private sector for implementation of ICD-10 will exceed $130 million.

Hay Group White Paper in 2006 estimated cost for hospitals ranged from $35K - $150K for < 100 beds, to $500K to $2 million for 400+ beds.

AAPC indicates current documentation = 50% could be coded.

AHIMA indicates after ICD 10- coders will be 50% slower for up to 3 months ++ 50% more physician queries.

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Page 50: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Potential Hidden CostsPotential Hidden Costs

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Page 51: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Back log of uncoded claims with ICD-9 while trying to get coders ready for ICD-10. Remote/outsourced coding may need to occur as well as OT.

Rejected claims from payers who are not ready to accept UB-04 with ICD -10 PLUS ICD-9 as necessary.

Vendor software rejecting ICD-10 or edits not working correctly thus slowing claim submission. Manual intervention to ensure claims are submitted and accepted.

New software if existing software for related ICD-10 work is not compatible.

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Page 52: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Cost to conduct a ‘risk assessment’ to assess current documentation patterns for providers and care givers.

Potential salary adjustments for the coders. Cost to conduct training for providers and care givers on

enhanced documentation. Cost to review EMR or other software to adapt to

enhanced documentation requirements. Cost to conduct a ‘readiness assessment ‘ pre go live to

determine readiness of coders, documentation and vendors.

Cost of moving ‘related’ work from the coders during training period. (EX: Drug administration/charge capture)

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Page 53: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Loss of productivity – rebills, denials, rejections, EOB work, medical necessity rejections/follow up (PFS+)

Loss of productivity – excessive physician queries, coder slow down with new coding process (HIM)

Growth in the discharged not final billed… Potential impact to the Case Mix Index Cost of a project manager (1 yr contract staff to coordinate all the

IT, testing, training, documentation assessments) Cost of implementing a clinical documentation improvement

program Cost of EMR changes and training of all impacted staff Cost of any changes to the functionality of the any software and

training costs

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Page 54: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

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Type ICD 9/minutes ICD 10/minutes

Inpt acute care 8.99 15.99

Outpt acute care 4.18 9.03

Physician practice 3.04 6.70

Free standing ASC

2.27 4.82

Nursing/SNF 6.71 12.98

Rehab facility 4.97 10.94

Additional time projected by CMS

2 minutes additional for each encounter

30% estimated loss in productivity

Page 55: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Mentorship program /formal 30% less productive – alternatives? Back fill with remote coding Explore Computer Assisted Coding –uses natural

language processing, cost analysis◦Outpt ancillary –high potential usage. (MN screening)◦ Other outpt areas – depending on how well the provider

is documenting new elements of ICD 10. (Queries)

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Page 56: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

AHIMA estimates approximately 16 hours of coding training is needed for outpatient coders and 50 hours for inpatient coders.

Additional time may be needed to refresh anatomy & physiology fundamentals.

Learn foundational knowledge before more intensive training.

Allow time for practice, practice, practice (key!) Down time during training and practice time. And don’t forget the NON-HIM training needs

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Page 57: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

What’s Next?What’s Next?

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Page 58: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

When ? By late 2014 (Already done, right?) Who? Key leaders in the revenue cycle/IT and HIM. Will a

designated project leader need identified? What? Create master list of all revenue cycle areas, IT,

HIM and physician issues How? Identify timelines for when components will be

done, who does it, results reviewed, testing, with ownership and timelines for completion

Key benchmarks for completion done beginning 1st Q 2015 or once final go live date is established

After go live, complete a 2nd set of benchmark assessments with barriers, delays, more education, etc.

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Page 59: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Phase 1: Goal: 3rd Q 2014 (if not already done)

Awareness training of leadership Awareness training of coders –

inpt/all others/providers Conduct a risk assessment of

current documentation patterns Track and trend ALL queries for a

defined period of time. Using the query, develop provider

education –with structured rollout time frames

Develop master list of impact areas – coders, PFS, IT, providers, etc.

Develop structured coder education –based on type of pt.

Phase 2: 1st Q of 2015 and after go live.

Conduct a readiness assessment –audit of documentation, testing of coders/per pt type, review of all IT functions, new forms, software testing, payer, contracting, etc.

Coding comparison for case mix impact, MS-DRG..

Aggressively code all pending ICD-9 prior to Oct, 2015.

Remote/outsourced coding before/during transition and training needed

Contract coding company should have a ‘preparedness plan”

Contract ICD-10 program manager or dedicated staff (Think Y2K)

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Page 60: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Make a master list of all software where ICD-9 is being used. This will be essential to the seamless implementation of ICD-10 (or less anguish).

Contact each vendor NOW to identify their roll out plan for compliance and when they will be ready to test.

Test with each vendor early in 2015 or as soon as they are available for testing. HUGE CONCERN!

Keep Sr. Leadership well aware of the status of ALL software testing and compliance. Be prepared to make changes if compliance is not achieved with testing 9 months prior to go live.

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Page 61: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Documentation Audits◦Your CDI (Clinical Documentation Improvement) department

can start now conducting ICD-10 documentation audits this year – risk assessments of current documentation practices.

◦Audit top 25 ICD-9-CM principal diagnosis codes and map to ICD-10-CM codes and begin auditing to determine whether the records contain the necessary clinicalclinical information to support the ICD-10-CM principal diagnosis code.

Coding Audits◦ Target certain inpatient cases for review based on the MS-

DRG assignment or the CC’s because both of these IP PPS components will undergo changes when reconfigured with the ICD-10-CM codes.

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Page 62: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Possible decrease in cash flow due to:◦ Increase in time to code medical records◦ Learning curves, potential increase in errors◦Decreased coder productivity, when, or will it recover◦System, vendor or software issues◦Potential reimbursement impact due to payer systems,

claim edits or processing issues◦Expect denials and underpayments◦ Lower DRGs or IP lack of ‘severity of illness’ due to

nonspecific documentation and unspecified diagnosis codes

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Page 63: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Defense for 2015 Defense for 2015

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Page 64: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Never too late to start!! Provide adequate system and coding resources for

‘go live’◦Will you need additional coding support? Contracted

coders? Who will handle the coding of ‘prior to’ accounts vs. ‘go live’ accounts? Possible concurrent coding?

Post ‘go live’ auditing & monitoring of:◦Coding & Documentation coding queries!◦Systems, data, reports◦Claims (UB & 1500), payments, denials

Audit and then more auditing from a RISK to a READINESS environment… Remember, we are ALL in this together!!

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Page 65: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

AAPCAAPC (American Academy of Professional Coders)◦ Certified coders will have opportunity to take the ICD-10 proficiency

exam starting in October 2012 and must successfully complete the test by September 30, 2014.

◦ AAPC will require its certified coders to pass this test to retain their AAPC will require its certified coders to pass this test to retain their certificationcertification..

AHIMAAHIMA (American Health Information Mgmt. Association)

◦ Continuing education hours with ICD-10-CM/PCS content will be required based on the specific AHIMA credential(s).

RHIA - required to have at least 6 CEUs dedicated to ICD-10-CM/PCS 12 for the CCS-P credential 18 for the CCS credential, etc.

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Page 66: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

www.ahima.org/icd10

www.cdc.gov/nchs/about/otheract/icd9/abticd10.htm

www.cms.hhs.gov/ICD9ProviderDiagnosticCodes/08_ICD10.asp

www.cms.gov/ICD10

www.who.int/classifications/icd/en

www.cms.gov/ICD10/Te110/itemdetail.asp?filterType=none&filterByDID=99&sortByDID=1&sortOrder=descending&itemID=cms1246998&intNumPerPage=10• CMS Sponsored Teleconference “Case Study in Translating Lab NCD”

(5-18-11) PowerPoint slides #23 & #24

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Page 67: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Day Egusquiza, PresidentAR Systems, IncBox 2521Twin Falls, Id 83303208 423 [email protected]

Thanks for joining us!Free info line available.NEW WEBPAGE: www.arsystemsdayegusquiza.com

JOIN US FOR UR/PA Bootcamp in San AntonioJuly 2015

RAC 2014 67

Page 68: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Physician DocumentationPhysician Documentation

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Page 69: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Documentation = Physicians! Begin providing them education now so that they

are fully prepared on what will be required for appropriate documentation for correct ICD-10 code assignment and MS-DRG assignment.

Customize the training for physicians based on their medical specialty.

Do not just focus on inpatient diagnoses and/or procedures but also on outpatient diagnoses as this will require ‘beefed’ up documentation from your docs as well to support the codes.

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Page 70: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

As a “basic awareness”:◦Coders are required to code to the highest degree of

specificity, butbut the quality of the physician documentation HASHAS to be there in the medical record.

◦Coders are bound by many rules/guidelines for application of the translation process of narratives to numerical codes, which generates the bill/claim.

◦Coders are not licensed to make the diagnoses, so if it is not stated, it cannot be coded!

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Page 71: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

1. Laterality (side) i.e., left or right – 25,000+ codes!2. Stage of Care, i.e., initial, subsequent, sequelae3. Specific Diagnosis4. Specific Anatomy5. Associated and/or Related Conditions6. Cause of Injury7. Documentation of Additional Symptoms or Conditions8. Dominant vs. Non-dominant Side9. Tobacco Exposure or Use10. Gustilo-Anderson scale

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Page 72: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

A 35-year-old man suffered open displaced tibia and fibula fractures of the right leg as the result of an automobile accident. In addition, he lost a lot of blood, also from the right leg.

To assign the correct ICD-10-CM codes, coders will need to know: Which leg and which specific bone(s) the patient injured (in this

example, it’s the right tibia and fibula) Whether the fracture is open or closed (in this case, open) Whether the fracture is displaced (in this case, displaced)

For open fractures, coders will also need to know what type of trauma the patient suffered to choose the appropriate character based on the Gustilo-Anderson classification system.

The 7th character identifies open fractures using the Gustilo-Anderson classifications, which are the most commonly used classifications for open fractures. The Gustilo-Anderson classification identifies the The Gustilo-Anderson classification identifies the severity of the soft tissue damage.severity of the soft tissue damage.

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Page 73: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

“Classification of fractures” – may be new to your coders and physicians◦ Type IType I: Wound is smaller than 1 cm, clean, and generally

caused by a fracture fragment that pierces the skin (low energy injury).

◦ Type IIType II: Wound is longer than 1 cm, not contaminated, and w/o major soft tissue damage or defect (low energy injury).

◦ Type IIIType III: Wound is longer than 1 cm, with significant soft tissue disruption. The mechanism often involves high-energy trauma, resulting in a severely unstable fracture with varying degrees of fragmentation.

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Page 74: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Weaknesses◦ Lack of understanding of what will be required for

“specificity” of documentation.◦Need to ensure detailed documentation is present in the

medical record.◦Will see a significant increase in the # of coding queries

coming their way for further clarification and/or specificity of diagnoses as documented in the medical record.

◦Need to be part of the “TEAM” as they will ‘drive’ the coding process.

◦Docs will now be affected in their own offices and must change how they document, i.e. superbill, lab requisitions

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Page 75: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Fracture (type, site, cause)◦ Closed fracture, right arm, due to osteoporosis

Additional Symptoms or Conditions◦ Extremity atherosclerosis with:

Intermittent claudication Rest pain Ulceration Gangrene

◦ Diverticulitis or diverticulosis with: Peritonitis/abscess Perforation Bleeding Location, i.e. small or large intestine

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Page 76: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Bucket, handle tear of lateral meniscus, current injury, right knee

Internal bleeding hemorrhoids Barrett’s esophagus with low grade dysplasia Pressure ulcer of right ankle, stage II Mild persistent asthma with status asthmaticus Alzheimer’s disease, early onset Benign neoplasm of right ovary Strain of right Achilles tendon, subsequent

encounter

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Page 77: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Expect a significant increaseincrease in the # of queries that will be generated from ICD-10.

Existing coding queries will most likely have to be updated as you will be asking for different documentation to capture “specificity”.

Make sure they are not ‘leading’ the physician to document one way or another.

Consider making the query part of the permanent medical record – physician addendum.

Track and trend for patterns. Then do more Ed!

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Page 78: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Think concurrent inpt coding. Immediate interaction with the provider and other

caregivers on weak or incomplete documentation. Have coders on the floor with the care team. Back

office coding results in ‘chasing’ the provider = delay in coding = delay in cash.

Expand the CDI team…to include both UR needs/severity of illness & intensity of service PLUS specificity/laterality/ and other unique

ICD-10 needs as identified thru queries and risk audits.

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Page 79: Presented by: Day Egusquiza, President AR Systems, Inc. (W/ Karen Kvarfordt, RHIA, AHIMA ICD-10 Certified Trainer) President, DiagnosisPlus, Inc

Lack of ‘specificity’ for a certain diagnosis as documented in the record, could have the potential of not capturing the CC/MCC which could result in a lower paying MS-DRG.

MS-DRG shifts could occur due to improper training of the coding staff. ◦Example: Coder selects the improper root operation for a

code, i.e. excision vs. resection.◦ This incorrect code assignment could also potentially

cause changes within the MS-DRGs resulting in payment increases or decreases.

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