MS-DRG countdown: Plan for productivity decreases

It’s important for hospitals to plan for coder productivity decreases as they near the Oct. 1 implementation date for MS-DRGs. Productivity rates are expected to drop by 20 to 25 percent as coders learn the new reimbursement system and spend more time querying physicians to gather the documentation needed to accurately code the encounter. A 20 to 25 percent productivity decrease could result in a one- to two-day delay in coding turnaround – a problem that could be compounded and worsen if not dealt with in a timely manner.

Here are some ideas to help hospitals cope with the expected productivity decreases:

• Measure coder productivity prior to Oct. 1 to establish a benchmark that HIM directors and managers can use to gauge productivity decreases.
• After Oct. 1, initiate ongoing audits to determine weaknesses in documentation and coding. Specifically focus on CC changes to determine if coders are coding to greatest specificity.
• Notify physicians of the potential for increased queries after Oct. 1.
• Create a plan to manage any coding backlog during the initial implementation of MS-DRGs.
• Meet with the CFO/finance department and alert them to potential decreases in cash flow resulting from productivity decreases. The impact on cash flow may not be realized until late October or early November, when reimbursement from early October discharges begin to get collected.

Ingenix DRG Desk Reference and the 2008 DRG Expert
The Ingenix DRG Desk Reference provides access to crucial information for determining DRG assignment, and offers a tutorial on how to audit assigned DRGs completely and effectively. The Ingenix 2008 DRG Expert can help you gain a clearer understanding of each MS-DRG grouper process and the associated reimbursement. The 2008 DRG Expert contains all information relative to DRG assignment, including the new severity-adjusted DRGs that Medicare plans to implement FY 2008. Click here for pricing and more information.