The time has to come for healthcare organizations to decide whether they will pursue ICD-10 as a strategic initiative or backburner the conversion until it ultimately drains resources, financial and otherwise, just to meet the federal mandate. That’s how the experts see it.HHS has been clear it won't push the Oct. 1, 2013 deadline back again. Yet, as of now, a large number of organizations have not yet taken the initial steps.

“On sheer numbers, people are behind the recommended timeline,” says Mark Williams, PricewaterhouseCooper's lead partner on ICD-10. “The big payers are starting. Providers seem to be doing very little. Some IT vendors are moving forward, others not yet.”

HIMMS most recent research backs that assertion. A survey published by the organization determined that 9 percent of respondents have initiated an ICD-10/HIPAA 5010 project. What's more, providers are not sure what they'll have to do to become compliant, HIMMS states in the November report.

Many hospitals, for instance, are already facing resource-consuming agendas such as healthcare reform, and rolling out electronic health record systems, so they're averse to the risk of being an ICD-10 first mover, says Eric Brown, vice president and research director at Forrester Research. That risk being that the conversion goes poorly and they wind up as a test case – of what not to do.

Seven benefits of ICD-10
ICD-10 holds distinct advantages for healthcare organizations, the experts say, even if a somewhat-alarming percentage of those groups don't yet fully comprehend the benefits.Forty-one percent of health plans believe the conversion presents opportunities, according to a report by Milliman published in mid-January.

“Most of the remaining respondents simply do not know what change ICD-10 will bring for their organization,” the report states.

Something healthcare IT pros should know: By moving now, rather than waiting, healthcare organizations have an opportunity to achieve business value and perhaps even competitive advantage via ICD-10. Wait too long, though, and that big chance might pass.

Milliman's report lists seven key benefits ICD-10 will bring: more accurate payments for new procedures, fewer rejected claims, fewer improper claims, better understanding of new procedures, improved disease management, better understanding of health conditions and healthcare outcomes, and harmonization of disease monitoring and reporting worldwide.

Risks of standing still
To tap into those advantages on Milliman's list, organizations need to do a certain amount of work now, or the Oct. 1, 2013 deadline will come up quickly, explains Janice Young, program director at IDC's Health Insights practice. In addition to potentially missing out on business value or competitive advantages, delaying the ICD-10 conversion until the eleventh hour could also sidetrack other IT projects.

“You don't want to wait and wait and wait until the last minute and then have to attack it like a fire drill,” Forrester's Brown adds. “That will only cost more money for lesser results.”

Analysts were clear that smaller organizations are not facing the same sense of urgency just yet but, regardless of a provider's size, since ICD-10 is a requirement, the earlier you start, the sooner you'll be able to take advantage of any benefits.

At the very least, Brown adds, it's a good idea to assess your particular situation so you'll understand what steps you need to reach ICD-10, how to get there, and how long it will likely take.

“ICD-10 can be strategic, and you can find competitive advantage,” PWC's Williams says. “But if you're not starting in 2010, the opportunity window could close.”