What to include in your ICD-10 transition budget


An ICD-10 transition budget will help you assess how much ICD-10 implementation will cost. It should cover the resources needed for training, testing, compensating for decreased productivity and support of implementation activities.

The budget focuses on four areas:

  • Coding
  • Revenue cycle
  • Project management
  • IT

You'll need to allocate resources -- time and money -- to accommodate each area:

Software  and hardware

  • In house and vendor modifications
  • Upgrades
  • New software, systems and equipment

Education

  • Coder training
  • Clinician education
  • Awareness raising

Testing related costs

Staff time needed for:

  • Implementation planning
  • Training
  • Testing
  • Vendor management

Temp staffing to assist with extra work resulting from:

  • Decreased coding productivity
  • Billing backlogs
  • Claims denial and rejection management
  • IT work on upgrades and systems
  • Lost time during training

Consulting services

Forms and reports

  • Redesign
  • Printing costs

Data conversion

Dual coding

  • Added time
  • Maintaining data collection
  • Analyzing data

While figuring out these costs, assign them to the appropriate department budgets. Also calculate contingency costs for problems such as software that doesn't work as planned or staffing issues. Also plan these costs across more than just the next two years. You will need more staffing to deal with productivity, claims management and software upgrades after Oct. 1, 2014.

The goal is to have your transition budget completed by May 1, 2013.