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

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

WHO ?

What ?

When ?

Why ?

How ?

2

Page 3: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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?

3

Page 4: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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.

4

Page 5: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

United Kingdom (1995)

Denmark, Finland, Iceland, Norway, Sweden

(1994 – 1997)

France (1997)

Australia (1998)

Belgium (1999)

Germany (2000)

Canada (2001)

U.S. (2015) (Reimbursement + Case Mix +

HIPAA Standard Transaction, 2003)That’s why!

5

Page 6: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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)

6

Page 7: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

What is the benefit to the provider?

◦ Dramatic improvement in the assignment of costs

to 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.

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.

7

Page 8: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

Share higher-quality data with other health

care providers.

◦ ICD-10 increases the amount of “specific”

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.

8

Page 9: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

Reimbursements will better align

with activity & cost.

◦Payers will reimburse severe &

complex cases better and simple

cases at lower rates.

How? By the diagnosis codes!

9

Page 10: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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?

10

Page 11: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

intentional, but also identifies if the patient needs some form

of assistance from social services, etc.

11

Page 12: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

What is ICD-10-CM

and

ICD-10-PCS?

12

Page 13: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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).

13

Page 14: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

Department of Health and Human Services (HHS)

mandated that HIPAA covered entities must update medical

coding sets, effective October 1, 2015.

Diagnosis code set changes from ICD-9-CM to ICD-10-CM.

Hospital inpatient procedure code set changes from

ICD-9-CM (Volume 3) to ICD-10-PCS.

No impact on CPT and/or HCPCS codes. Yeah!

We will still report CPT codes for all outpatient

procedures/services & physician hospital visits to

Observation and Inpatients (E&Ms).

14

Page 15: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

ICD-10-CM (Diagnoses)◦ Will be used by all hospitals, providers, clinics,

lab, radiology, psych, rehab, nursing homes, etc.

ICD-10-PCS (Procedures)◦ Will be used only for hospital claims for inpatient

hospital procedures

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

Visits, Lab and Radiology Outpatients, etc.

15

Page 16: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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 no

grace period. Then why the 1 year delay?

16

Page 17: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

CMS clarifies policy for processing split claims for

hospital encounters that span the ICD-10

implementation date.◦ MLN (Medical Learning Network) Matters Number: SE1325

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

on one claim with Date of Service (DOS) through September

30, 2015, and all ICD-10 codes placed on the other claim

with DOS beginning October 1, 2015 and later.

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

◦ Same guidance for Inpatient and Outpatient encounters!

17

Page 18: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

Non-HIM Uses For ICD-9-CM-

Preparing for ICD-10-CM – as

we move from 15,000 codes to

over 70,000 codes

18

Page 19: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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 coders

PFS /denial ‘busters’ with feedback to CDI

Payer new edits –PFS monitors and advises

IT 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 ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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.

20

Page 21: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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.

21

Page 22: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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.

22

Page 23: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

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

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.

25

Page 26: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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?

26

Page 27: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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.

27

Page 28: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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!)

28

Page 29: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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?

29

Page 30: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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.”

30

Page 31: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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?)

31

Page 32: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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!)

32

Page 33: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

33

Page 34: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

Diagnosis Coding

(ICD-10-CM)

Building a code

34

Page 35: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

ICD-9-CM

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

alpha (E or V codes) ◦ 2nd – 5th characters are

numeric◦ Decimal placed after the first

3 characters◦ 17 Chapters and “V” & “E”

codes are ‘supplemental’

◦ 14,000 diagnosis codes

ICD-10-CM

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

letters used except “U”)◦ 2nd – 7th characters can be

alpha and/or numeric◦ Decimal placed after the first

3 characters (the same!)◦ 21 Chapters and “V” & “E”

codes are ‘not’ supplemental

◦ 69,000+ diagnosis codes

35

Page 36: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

A Initial encounter

D Subsequent encounter

Q 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?

36

Page 37: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

X X X X X X X

CategoryEtiology, anatomic

site, severity

37

Extension

Page 38: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

I10 Essential (primary) hypertension

S01.02xA Laceration with foreign body of scalp, initial

encounter

S01.02xD Laceration with foreign body of scalp,

subsequent encounter

S02.2xxA Fracture of nasal bones, initial encounter for

closed fracture

H65.01 Acute serous otitis media, right ear (CDM too)

H65.02 Acute serous otitis media, left ear

H65.03 Acute serous otitis media, bilateral

38

Page 39: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

On any given day, anything can happen!

W17.82xA Fall from (out of) grocery cart, initial

encounter

V94.4xxA Injury to barefoot water-skier, initial

encounter

W61.43xA Pecked by turkey, initial encounter

Y93.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.

39

Page 40: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

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’

25,000 (36%) of all ICD-10-CM diagnosis codes will

now distinguish right vs. left

40

Page 41: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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 1 crosswalk from ICD-9-CM to

ICD-10-CM (www.cms.gov/ICD10/11b15_2013_ICD10PCS.asp)

Available on CMS’s website

41

Page 42: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

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Page 44: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

A character is a stable, standardized code

component◦ Holds a fixed place in the code

◦ Retains its meaning across a range of codes

A value is an individual unit defined for each

character

Section Body Root Body Approach Device Qualifier

System Operation Part

44

Page 45: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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.

45

Page 46: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

K55.21 Angiodysplasia of colon with

hemorrhage (569.85)

K57.32 Diverticulitis of large intestine without

perforation or abscess without

bleeding (562.11)

46

Page 47: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

0DJD8ZZ Inspection of Lower Intestinal

Tract, via Natural or Artificial

Opening Endoscopic (45.23)

47

Page 48: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

What Will ICD-10 Cost?

48

Page 49: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

Potential Hidden Costs

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Page 51: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

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

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

54

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

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

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

What’s Next?

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Page 58: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

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)59

Page 60: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

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 clinical 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 ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

Defense for 2015

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Page 64: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

AAPC (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 certification.

AHIMA (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 ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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&sortBy

DID=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 ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

Day Egusquiza, President

AR Systems, Inc

Box 2521

Twin Falls, Id 83303

208 423 9036

[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 ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

Physician Documentation

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Page 69: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

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

specificity, but the quality of the physician documentation

HAS 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 ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

1. Laterality (side) i.e., left or right – 25,000+ codes!

2. Stage of Care, i.e., initial, subsequent, sequelae

3. Specific Diagnosis

4. Specific Anatomy

5. Associated and/or Related Conditions

6. Cause of Injury

7. Documentation of Additional Symptoms or Conditions

8. Dominant vs. Non-dominant Side

9. Tobacco Exposure or Use

10. Gustilo-Anderson scale

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Page 72: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

severity of the soft tissue damage.

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Page 73: Presented by: Day Egusquiza, President AR Systems, Inc. (W ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

“Classification of fractures” – may be new to your

coders and physicians◦ Type I: Wound is smaller than 1 cm, clean, and generally

caused by a fracture fragment that pierces the skin (low

energy injury).

◦ Type II: Wound is longer than 1 cm, not contaminated,

and w/o major soft tissue damage or defect (low energy

injury).

◦ Type 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 ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

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

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

Expect a significant increase 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 ... · International Classification of Diseases, 9th Revision, Clinical Modification (ICD-9-CM) is based on the WHO ICD-9

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

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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