The 2008 Nachimon Advisors, LLC report on The Cost of Implementing ICD-10 for Physician Practices has been updated for 2014.
The 2008 Nachimon Advisors, LLC report on The Cost of Implementing ICD-10 for Physician Practices has been updated for 2014. The study divided practices into small, medium and large categories. A small practice was defined as having 3 physicians and 2 administrators; a medium as having 10 physicians, 6 administrators and 1 fulltime coder; and a large as having 100 physicians, 64 administrators and 10 fulltime coders.
The total cost of implementing ICD-10 for a small practice was estimated at $83,290 in 2008 and has been revised to a range of $56,639 to $226,105 in 2014. For medium-sized practices the 2008 estimate was $285,195 while the 2014 range was $213,364 to $824,735. For a large practice in 2008 the estimate was $2,728,780 while the 2014 estimate ranges from $2,017,151 to $8,018,364.
The methodology used to arrive at these estimates was basically the same in both 2008 and 2014 with the addition of interviews with practices, vendors and consultants. Why the wide variance? Nachimson cited the dramatically different regulatory environment as well as the need to pay for upgrades to electronic health records (EHR), and practice management systems (PMS). Added to this is the required use of 2014 certified EHR technology in order to meet Meaningful Use requirements.
The cost summary for 2008 broke out expenses in categories for education, process analysis, changes to superbills, IT costs, increased documentation costs, and cash flow disruption. The expense portion of the study for 2014 also included tasks not deemed critical in 2008, such as testing. The 2014 cost projections are listed in ranges to reflect practice variations.