Fitch Ratings believes the majority of the rated organizations in the nonprofit healthcare sector will be prepared for the Oct. 1 deadline, and available assets will help offset the IT and training costs during the transition.
However, the transition is further complicated by payers’ and the government’s simultaneous switch to ICD-10. Although many hospitals are well-prepared, the sheer magnitude of the transition within the industry is likely to add pressure to hospitals’ cash flows, and may cause downgrades in hospitals with weak liquidity positions or depressed profitability.
“It is a challenging time as healthcare reform moves forward and other pressures, such as sequestration, inpatient volume declines and reduced reimbursement are being felt,” said Gary Sokolow, director of Fitch’s U.S. Public Finance Group, in a news release. “ICD-10 conversion will bring additional costs at a time when hospital operations are already under pressure.”
More Articles on ICD-10:
Paul Levy: Is ICD-10 Worth the Cost?
3 Best Practices for Getting Physicians on Board With ICD-10 Implementation
AAPC: 3 Tips on Selecting Proper ICD-10 Codes
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.