Even with less than a year left until the compliance deadline – and monetary reimbursement on the line – a disconcerting number of healthcare entities indicated that they are not yet prepared for HIPAA 5010.

HIMSS most recent ICD-10/5010 Readiness Survey, in fact, determined that among respondents “one third report they either don’t have a plan for [HIPAA 5010] testing, or won’t test until the fourth quarter of this year.”

Specifically, 30 percent intend to start testing with trading partners during this quarter, 33 percent in the second and third quarters, but the other 33 percent either don't know or are waiting until the last quarter of 2011.

The looming deadline of January 1, 2012 means that trying to cram all testing into the fourth quarter of this year will invariably be problematic.

[Related: Advice on preparing for HIPAA 5010 Testing. See also: Breaking ICD-10 in two to tame it.]

“Health care providers would do best to avoid the fourth quarter for testing, when payer and clearinghouse resources will be taxed to the limit,” explains Joe Miller, one of the survey authors and former chair of the HIMSS Medical Banking and Financial Systems Committee, in a prepared statement. “The result could delay or negate their receiving payment.”

That is not to say that no providers are making HIPAA 5010 headway. Rather, HIMSS survey results demonstrate that more than half have an implementation plan in place. Of those, 66 percent intend to upgrade systems and 19 percent will use a clearinghouse.

ICD10Watch's own small and still open reader poll has thus far determined that 25 percent of respondents do not know when they'll achieve the first HIPAA 5010 milestone, the recommended Level 1 compliance date of January 1, 2011, while another 25 percent confess to not even knowing what Level 1 is. While 13 percent of the voters indicate achieving Level 1, the remaining 38 percent voted that they plan to this quarter.

Tom Sullivan blogs regularly at ICD10Watch.com.