As part of the SGR patch legislation passed on March 31, 2014, Congress approved a one-year delay in mandatory implementation date for use of ICD-10. Originally scheduled to go live on October 1, 2014, the law now prohibits the Secretary of HHS from mandating use of ICD-10 until no earlier than October 1, 2015.
Since 2011, the healthcare provider community has known that mandatory use of ICD-10 would become effective on October 1, 2014 for all entities covered by HIPAA. However, for a variety of reasons, it was becoming increasingly apparent that many providers and health plans would not be ready to “go live” by the October 1, 2014 deadline.
Various reports from professional associations and trade groups indicated that some providers and health plans were slow to move to ICD-10. This caused many to wonder whether there would be significant cash flow disruptions in mid-October that would jeopardize the economic survival of many physicians and hospitals. Some consultants were telling providers to secure a line of credit that would cover cash flow disruptions for up to three months. For the past several months, the American Medical Association has been calling for a delay in the ICD-10 effective date.
ADVOCATE has been advising clients to be prepared for the October 1, 2014 deadline and has engaged in a variety of educational programming to assist clients in being ready. ADVOCATE intends to continue providing educational programming to assist its clients to be ICD-10 ready if and when the effective date arrives.
As always, ADVOCATE will keep you updated on this and all issues impacting radiology as they become available.
Kirk Reinitz, CPA