By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    physical health
    5 Ways Playing Games Can Improve Neural and Physical Health
    September 9, 2022
    Reasons For Hair Loss and Its Treatment
    Reasons For Hair Loss and Its Treatment
    February 16, 2022
    healthcare organization
    5 Actionable Strategies For Healthcare Organizations
    August 15, 2022
    Latest News
    6 Essential Strategies for Improving Your Medical Practice
    January 25, 2023
    Staying Positive While Living with Mesothelioma
    January 24, 2023
    The Many Health Benefits of Being Outdoors
    January 17, 2023
    How to Assess a Safe Placement of a Nasogastric or Nasoenteric Tube and Its Complications
    January 19, 2023
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Corporate Social Responsibility in Healthcare
    November 15, 2022
    Product Details
    Ethical Decisions: Strong Leadership and Effective Planning Are Key
    June 29, 2014
    Handling HIPAA Rules In Sports: Why Athlete Privacy Matters
    April 18, 2016
    Latest News
    Simplifying the Genetic Testing Process: How At-Home Kits are Changing the Game
    January 25, 2023
    9 Hospitals That Have Introduced Green Initiatives
    January 25, 2023
    Why a Health Retreat Can Be the Best Medicine
    January 12, 2023
    Best Money-Saving Tips for Health Managers
    January 12, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: M&A Activity and Hospital Priorities Seek a Groove as ICD-10 Looms
Share
Sign In
Notification Show More
Latest News
ABA therapist
Everything You Need to Know About Applied Behavior Analysis
Health
Small Lifestyle Changes That Can Have A Big Impact On Your Well-Being
lifestyle Wellness
The Future Of Medicine: How Immunotherapy Is Saving Lives
The Future Of Medicine: How Immunotherapy Is Saving Lives
Technology
medical practice and technology advancement
6 Essential Strategies for Improving Your Medical Practice
Technology
digital dental x-ray
How Does A Digital Dental X-Ray Work?
Dental health
Aa
Health Works CollectiveHealth Works Collective
Aa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > eHealth > M&A Activity and Hospital Priorities Seek a Groove as ICD-10 Looms
eHealth

M&A Activity and Hospital Priorities Seek a Groove as ICD-10 Looms

Chris Hoffman
Last updated: 2011/07/23 at 7:52 AM
Chris Hoffman
Share
5 Min Read
SHARE

While the deadline for ICD-10 implementation is not until October 2013, the new clinical documentation code set expands over 8x from 24,000 to > 200,000 and with enterprise-wide effects will be one of the most impactful mandates in the history of medical coding.

While the deadline for ICD-10 implementation is not until October 2013, the new clinical documentation code set expands over 8x from 24,000 to > 200,000 and with enterprise-wide effects will be one of the most impactful mandates in the history of medical coding.

According to studies from HIMSS and AHIMA, the majority of provider organizations are lagging in their ICD-10 preparedness. Emdeon also mentioned in their Q1 earnings release that their hospital customers have only recently started to focus on remediating their systems in anticipation of ICD-10.

More Read

A Guide to Medical Billing Services for Small Practices

How to Use E-Cigarettes to Stop Smoking
Healthcare Blogging: How to Become a Trusted Medical Source
What Has the Medical Industry Learned from COVID-19?
Ethics of Social Media Success and Instagram Influencers in Healthcare

Under the ICD-10 environment, hospitals will quickly find that their current levels of physician documentation will not support the new mandates, which could pose risks to reimbursement rates. Our significant work in healthcare IT and compliance are underscoring the importance of hospitals aligning now with their physicians so that improved documentation protocols can ease the pain of transitioning to ICD-10.

M&A activity in healthcare IT has been robust as my colleague Seth Kneller illustrated in a recent post.  The clinical documentation space in particular was invigorated with the recent announcement of two notable deals:

  • Nuance Communications acquired Webmedx:  Both Nuance and Webmedx offer transcription services with speech recognition capabilities and natural language processing (NLP) technology. Webmedx proprietary data mining technology, QualityAnalytics™ will enhance Nuance’s clinical language understanding which will allow more clinically intelligent speech-driven conversion of clinical information.
  • MedQuist acquires M*Modal:  Medquist, a leader in integrated clinical documentation solutions, advanced its opportunity to penetrate the transcription market segment with the acquisition of M*Modal’s advanced speech and natural language processing technologies. M*Modal reported an annual revenue run rate of $24m, and with TEV on the deal reported at $130m, a healthy 5.2x revenue multiple bodes well for the sector.

These two trades are indicative of the market’s anticipation of an increasing focus on clinical documentation due both to meaningful use requirements as well as the likely needs under ICD-10. To the defense of hospital administrators who have seemingly ignored ICD-10 to-date, the funding demands associated with health reform present tremendous challenges; and these executives likely have a few other priorities competing with ICD-10 conversions in their queue including:

  • EHR and Meaningful Use:  While providers are focusing on EHR templates and spending millions meeting meaningful use guidelines, they would be well served to incorporate ICD-10 into these projects in order to enable documentation now with the specificity necessary for the future.
  • HIPAA 5010 compliance:  With a deadline of January 2012, crunch time is approaching to meet (yet another) new transaction standard associated with the HIPAA 5010 upgrade (which relates to increased transaction uniformity, pay for performance support, and streamlined reimbursement).   AHIMA published a Top 10 list for phase two of ICD-10 preparation which includes step-by-step processes designed to encourage organizations to prepare for ICD-10 in parallel to the migration to 5010.

U.S. hospitals are busy toeing the line on a range of mandates, and if not addressed in parallel with more pressing needs, ICD-10 will by pushed to the bottom of most priority lists.

We believe the most successful provider organizations (e.g. hospitals) will optimize reimbursement levels under ICD-10 and their core business processes around the revenue cycle.  As this occurs jointly all boats will rise – enabling higher levels of reimbursement, analytics, quality, efficiency and coordination of healthcare.

Let us know what you think.

Emma Daugherty

Emma Daugherty is a Senior Analyst at TripleTree covering the life sciences sector with a focus on provider technologies and patient safety.  You can contact her at edaugherty@triple-tree.com.

TAGGED: EHR, HIT, ICD-10, medical codes

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Chris Hoffman July 23, 2011
Share this Article
Facebook Twitter Copy Link Print
Share
Previous Article IBM File System Scans 10 Billion Files in 43 minutes
Next Article Conservatives: The Utah Health Exchange is Not a Model

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

ABA therapist
Everything You Need to Know About Applied Behavior Analysis
Health January 26, 2023
Small Lifestyle Changes That Can Have A Big Impact On Your Well-Being
lifestyle Wellness January 26, 2023
The Future Of Medicine: How Immunotherapy Is Saving Lives
The Future Of Medicine: How Immunotherapy Is Saving Lives
Technology January 26, 2023
medical practice and technology advancement
6 Essential Strategies for Improving Your Medical Practice
Technology January 25, 2023

You Might also Like

healthcare video marketing
MarketingSocial Media

How to Maintain a Successful YouTube Channel as a Healthcare Organization: Advantages of Video Marketing for your Medical Practice

November 9, 2022
Electronic Health Records
BusinesseHealthHospital AdministrationMedical Records

Top Benefits of Electronic Health Records for Psychiatrists and Psychologists

August 15, 2022
tips to design a health app
eHealth

How To Improve Patient Access Metrics

April 5, 2022
social media addiction is harming teenage mental health
eHealthMental HealthSocial Media

5 Ways Social Media Affects Teen Mental Health

April 4, 2022
//

We influence million of users and is the most authentic source of information on healthcare business and technology news.

Quick Links

  • About
  • Contact
  • Privacy
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US

© 2008-2023 HealthWorks Collective. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?