According to the latest industry estimates, ICD-10 implementation costs may range anywhere from $83,290 for a small practice to more than $2.7 million for a large one. If you’re not sure what your practice may need to spend during the transition, now is the time to begin developing a budget. By doing so, you’ll not only gain a better understanding of the financial impact of ICD-10, but you’ll also be better prepared to deal with any dips in productivity or cash flow that may occur when the conversion takes place.
To get started, view the resource guide, 8 Steps to Ensure ICD-10 Transition Success. It offers valuable tips and resources for quantifying both the direct and indirect costs associated with the new code set, including:
- Training. Set aside funds for educating administrative and clinical staff, and be sure to factor in certification costs as well.
- IT upgrades. Whether purchasing new systems or updating existing ones, expect to devote a significant portion of your budget to IT.
- Productivity declines. Consider the time it may take staff to adjust to ICD-10 and be prepared to pay for additional staff resources and/or overtime before, during and after the transition.
As a result of the budgeting process and your estimates on the impact of various cash flow disruptions at your practice, you might also want to consider getting a temporary line of credit. This will help you better prepare for and minimize the impact of any cash flow disruption you may experience.
You can also download this free budgeting spreadsheet to help. Have you started budgeting for ICD-10? Have you found any helpful resources?