1. Transitioning to ICD-10-CM/PCS

2. Agenda Overview Implementation Team Organization Awareness Impact Analysis Financial Impact Training Plan Timeline

3. ICD-10 Implementation OCTOBER 1, 2013 - ICD-10-CM and ICD-10-PCS code sets implementation date – In January 2009, HHS published a Final Rule requiring the adoption of ICD-10-CM and ICD-10-PCS code sets to replace the 30-year-old ICD-9-CM coding system used for billing purposes ICD-10-CM - International Classification of Disease, 10 th Revision, Clinical Modification – Diagnosis Code Set ICD-10-PCS – International Classification of Disease, 10 th Revision, Procedural Coding System – Procedure Code Set Billing Format (X12 version 5010)update also required to accommodate new code formats – Effective Date – January 1, 2012

4. ICD-10 Implementation SettingDiagnosis Code SetProcedure Code Set Hospital InpatientICD-10-CMICD-10-PCS Hospital OutpatientICD-10-CMCPT/HCPCS Physician FacilityICD-10-CMCPT/HCPCS Physician OfficeICD-10-CMCPT/HCPCS Skilled NursingICD-10-CMCPT/HCPCS Home HealthICD-10-CMCPT/HCPCS Note: Only inpatient hospital setting impacted by change in procedural coding system

5. Implementation Team Charge: Implementation Plan Development and Oversight Internal Staff – Health Information Management – Finance – Information Technology – Medical Staff Leadership – Other Use of Consultants

6. Organization Awareness Communication Plan – Who, what, when Need for Participation in Impact Analysis Need for Multi-Year Resource Planning

7. Impact Analysis Assess all software applications that currently store, transmit or received ICD-9-CM codes for potential impact Required Changes to Workflow – Analysis of coding and billing functions throughout the revenue cycle – Billing Forms/Spreadsheets – Clinical Documentation Issues – Impact on internal and external reporting Evaluation of contracts for which payment is based on ICD-9-CM codes

8. Financial Impact Potential impact to hospital – $15 million to $20 million Need to plan for decrease in productivity to prevent billing backlogs during training and initial implementation

9. Training Plan Varies based on employee role (audience) Content Timing Delivery Methods Contracted Out or Provided by Internal Staff

10. Recommended Implementation Schedule 10 2009/ 2010201120122013 Implementation Plan Impact Assessment Implementation Preparation Go Live Preparation Post – Implementation Follow-Up Phase I Phase II Phase III Phase IV Year