Thursday, October 1, 2015

ICD-10 Will Impact an Area You Least Expect...Medical Equipment

As you know, today, October 1st, every hospital will have to use a new coding structure - ICD-10. As your hospital starts wading through this challenging and potentially costly process, be aware that it might affect other parts of the business...including medical equipment.

The changing reimbursement structure could impact hospital cash flow significantly. Many hospitals are already planning for payment delays. And because of the drastic increase in number of codes, error rates are forecast to increase by 300% compared to ICD-9. Medical equipment lifecycle spending is one, often overlooked, area to save money. Taking a deeper look into your medical equipment spending is one way to offset the impact of ICD-10.

Additionally, be on the lookout for how ICD-10 starts to impact medical equipment pricing. Last time there was a coding change, CMS consolidated the reimbursements from two abdominal CT scans to one. As a result hospitals weren't able to justify the price of expensive scanners; OEM's dramatically lowered their pricing and this changed the CT market forever.

If ICD-10 is forcing your hospital to find savings, make sure to look in your medical equipment lifecycle. 

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