Before the ICD-10 delay to 2015 by the government, 44 percent of physicians did not know whether they would be ready, according to the 2014 Practice Profitability Index (PPI). In fact, another 25 percent were certain they would not be prepared and face high transitions and ICD-10 upgrade costs.
The report reveals a dark outlook for physician practices struggling with eroding profits with ICD-10 identified as a key issue weighing on finances in addition to declining reimbursements and requirements from the Affordable Care Act (ACA).
“The move by the government to push back the transition to ICD-10 has caused significant frustration among medical groups that had already begun preparations to meet the October deadline,” said Albert Santalo, Chairman and CEO of CareCloud. “But while physicians will now avoid ICD-10 related disruptions to billing and collections in 2014, their preparation costs remain. They’re increasingly buckling down to focus on those processes and technologies that can support them for the long term.”
AMA States ICD-10 Transition an “Unfundable Mandate”
While the 1 year ICD-10 delay to 2015 provides some additional runway for the majority of physicians who were unprepared, the AMA still expresses “deep concerns” about the impact on physicians, Fierce Health IT reports. According to a statement released by the AMA President Ardis Dee Hoven states that the ICD-10 transition is an “unfundable mandate”
About The Practice Profitability Index (PPI)
Now in its second year, the PPI was created in to provide a voice to physician practices across the US regarding issues that impact their financial and operational health. It reflects the belief that better health outcomes for Americans are more likely to be achieved when practices themselves are thriving and efficient.
- The PPI was conceived as part of a partnership between leading cloud-based health technology provider, CareCloud, and Quantia, Inc.,a leader in physician engagement and alignment serving more than 200,000 physicians through its online physician community
- It involved gathering insights via an interactive online questionnaire and related discussion groups. The result is intended to serve as an annual barometer for the operational wellbeing of US medical groups in the year ahead.
- 5,064 physicians contributed their insights to the PPI during March of 2014 – making it one of the largest efforts of its kind in the industry.