What is ICD-10 Codes, Importance and Benefits
ICD-10 codes (The tenth edition of International Classification of Diseases) is a clinical cataloging program that came into force on October 1, 2015. The transition of ICD-10 codes for medical billing from ICD-9 codes took place after a series of chronic delays. However, “ICD-10” offers wider classification options than its predecessor “ICD-9”. This program is adopted by the federal government or regulation entities while it is owned, maintained and published by The World Health Organization (WHO).
ICD-10 codes can have 2-7 characters each representing a specific diagnosis. These 7 characters represent section, body system, root operation, body region, approach, method, and qualifier respectively. First three characters are designated as categories of the codes and can be expanded to four, five, six or seven in order to add more specific information.
Let’s take an example of ICD-10 codes of medical billing i.e. S86, in this instance, “S” used along with numerals “8” and “6” refers to the category of the diagnosis related to injury of muscle, fascia, and tendon at lower leg level. This three-character category of ICD-10 data can stand alone as a code.
Importance of Assigning ICD-10 Codes:
It is essential for physicians as well as their faculty that ICD-10 codes of medical billing are not just limited to compliance, but it is more about improving the patient outcomes. The clinical details in the latest version provide the physicians with more information they require to measure healthcare service quality and improve the care of individuals.
Physicians would be glad to know that enhanced reporting capabilities of ICD-10 allow high reimbursements and increased pay for performance which directly factors in improvement of operational costs and the financial process.
Moreover, it has potential to improve the following:
- Outcome measurements
- Clinical, financial and administrative performance measurement
- The design of payment methods and claims processing
- Reporting on new medical technology
- Improving reimbursement systems
- Care and disease process management
Benefits of ICD-10 Codes of Medical Billing:
Most of the physicians have successfully adapted to this new transition, but still, there are a few who are confused whether to comply or not. If you are one of the latter, then read the following benefits of ICD-10 to get rid of your uncertainty.
- Lesser Fraudulent:
Implementation of ICD-10 codes of medical billing results in lesser frauds and more claims, which escalates the cost of healthcare provider’s and payer’s premiums. This new transition ultimately improves the patient care and helps to obtain more reimbursement for the physicians.
- Performance Analyzing:
This upgraded version can help the provider to analyze their services, utilization of resources, operational costs and outcomes. More the detail on procedure types, more it will be easier for the physicians to monitor their own performance which will allow them to take essential steps to make headway.
- Enhanced Quality of Documentation:
The ICD-10 codes of medical billing utterly fall back on the clinical documentation. There are about 68000 codes added to the new ICD-10 codes and the accuracy of codes rely on clinical documentation. So, with the adoption of the ICD-10 coding system, quality of documentation will also be enhanced.
- Fair Pay:
This granular ICD-10 system allows the physicians to appropriately document the intricacy of the care rendered and differentiate between long-standing patients and patients who visit for regular check-ups. In this way, the patients can be billed in accordance with service provided which result in better payment procedures.
- Build Relationship:
The new ICD-10 codes of medical billing help the physicians to build or improve their relationships with patients and insurance carrier. Moreover, the physicians can shake hands with the third-party agencies in order to increase the reimbursement, thereby enhancing their revenue and financial process.
With over 13 years of industry experience, Bikham Healthcare offers you top of the line medical billing and coding services with a team that houses complete knowledge of ICD-10 codes in order to help achieve your financial objectives with minimum denials and no delays.