HIMSS Vantage Point October 2008

Adoption of ICD-10 and X12, Version 5010

Summary

In August 2008, the Department of Health and Human Services (HHS) issued a proposed rule that would require healthcare providers to adopt ICD-10 Code Sets for electronic transactions by October 2011. Only one-quarter of respondents believe that the industry will be able to meet this deadline. Half of respondents were concerned that either a lack of readiness on the part of the vendor community or by insurers/clearinghouses to accept ICD-10 claims will impact their ability to be ready on time. In a separate ruling, HHS also called for the adoption of the updated X12 standard, Version 5010 to be in place by April 1, 2010. Only one-quarter of respondents believe the industry will be able to meet this timeline. The cost and time associated with completing necessary upgrades was most frequently identified as the primary barrier to adoption of these standards.

Adoption of ICD-10 Code Sets

Only one-quarter of respondents indicated that the industry will be ready to adopt the ICD-10 code sets on or before the October 2011 deadline. Another one-quarter of respondents believed that the industry needs a one year extension, while 30 percent believe that the industry needs an extension of one to three years.

Barrier to Adopting ICD-10 Code Sets

One-third of respondents believed that the biggest barrier to adopting ICD-10 code sets will be a lack of readiness on the part of the vendor community. Another 20 percent believe that insurers/clearinghouses won’t be ready to accept ICD-10 claims. Only three percent indicated that there would be no barrier to adopting ICD-10 code sets.

Adoption of X12 Standard, Version 5010

Approximately one-quarter of respondents indicated that the industry will be ready to adopt the updated X12, version 5010 standard on or before April 1, 2010. Another 28 percent believe that the industry needs an extension of less than a year, while 30 percent stated that an extension of at least a year is required.

Most Difficult to Address

Nearly half of respondents indicated that it will be most difficult to address the conversion to ICD-10 code sets. Only 10 percent of respondents noted that it will be more difficult to convert to X12, Version 5010. Twenty-nine percent believe that both will be equally difficult to address.

Population That Most Benefits from Telemedicine

Over half of the respondents believe that patient in rural/underserved areas will benefit the most from continued adoption of telemedicine. Another third believe that patients with chronic diseases will benefit the most.