Coders can expect to confront new challenges, including new payment models and HIPAA changes.

The new year brings new challenges for the healthcare industry. From new payment models to updates to the Health Insurance Portability and Accountability Act (HIPAA) to 21st Century Cures, hold on to your hats, because it is going to be a bumpy ride!

The Patient Driven Groupings Model (PDGM) will be implemented by the Centers for Medicare & Medicaid Services (CMS) on Oct. 1, 2019 for Skilled Nursing Facility (SNF) patients. The Health Insurance Prospective Payment System (HIPPS) code will still be reported, but the new system will not be based on Resource Utilization Group version IV. The principal diagnosis will determine the patient’s clinical category. The new groups are based on:

  1. Physical therapy (clinical category and functional score);
  2. Occupational therapy (clinical category and functional score);
  3. Speech and language (presence of acute neurological condition, SLP comorbidity or cognitive impairment, mechanically altered diet, and swallowing disorder);
  4. Non-therapy ancillary (comorbidities based on ICD-10-CM secondary diagnoses); and
  5. Nursing (same as RUG-IV).

There is also a variable per diem adjustment that changes the rate over the course of the patient’s stay. The Minimum Data Set (MDS) will continue to be used under the new methodology as well.

The Patient Driven Groupings Model (PDGM) will be implemented by CMS on Jan. 1, 2020 for home health patients. There are 432 possible case-mix adjusted payment groups for each 30-day period. The groups are based on:

  1. Timing (initial or subsequent);
  2. Admission source (community or institutional);
  3. Clinical grouping (based on principal diagnosis);
  4. Functional impairment (using specific OASIS items);
  5. Comorbidity adjustment (secondary diagnoses); and
  6. Additional payment adjustments based on cost and frequency of visits.

These two reimbursement methodologies will utilize ICD-10-CM diagnosis codes more than the previous methodologies. 

As health information management (HIM) coding professionals move forward into the ICD-10-CM/PCS world, we are still struggling with productivity and quality metrics. In the Journal of the American Health Information Management Association (AHIMA) are articles to assist in establishing your key performance indicators under ICD-10-CM/PCS. One is the articles is titled “New Study Illuminates the Ongoing Road to ICD-10 Productivity and Optimization.” 

HIPAA has been in place since 1996, when it was passed and adopted by Congress. The U.S. Department of Health and Human Services (HHS) is asking for input regarding how the HIPAA law can be amended to promote value-based healthcare. Currently, HIPAA has erected some barriers that have made it difficult to respond to the opioid crisis. The privacy laws are not the same across all states; that is one example of such a barrier. Another issue is patient matching and its impact on value-based reporting. If the patients are matched correctly, then value-based reporting or population health information may be incorrect. If you have any input with regard to changes to HIPAA, please direct your comments to Laura Riplinger, Senior Director of Federal Relations for AHIMA.

A second draft of the Trusted Exchange Framework and Common Agreement (TEFCA) is also upon us. The hope is that it will create a common set of principles for the exchange of data in a secure manner and promote interoperability. One complaint regarding the electronic health record (EHR) is the lack of interoperability outside of each facility. The exchange of data represents a need for value-based reporting.

The Healthcare Information and Management Systems Society (HIMSS) Quarterly Winter Interoperability and Health Information Exchange Community Roundtable will take place on Jan. 16, 2019 from 10:30 a.m.-noon CST. Their topic for this meeting is Community Information Exchange (CIE). 

The uses of ICD-10-CM/PCS continue to grow as we move into this new year. Happy new year, everyone! I hope that you are prepared.

Resources:

https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/SNFPPS/Downloads/PDPM-101_Final.pdf

www.ahima.org

https://www.himss.org/event/himss-quarterly-winter-interoperability-hie-community-roundtable

http://cqrcengage.com/ahima/app/document/28265335

http://cqrcengage.com/ahima/app/document/29106414

http://cqrcengage.com/ahima/app/document/30366621

Facebook
Twitter
LinkedIn

Laurie M. Johnson, MS, RHIA, FAHIMA, AHIMA Approved ICD-10-CM/PCS Trainer

Laurie Johnson is currently a senior healthcare consultant for Revenue Cycle Solutions, based in Pittsburgh, Pa. Laurie is an AHIMA-approved ICD-10-CM/PCS trainer. She has more than 35 years of experience in health information management and specializes in coding and related functions. She has been a featured speaker in over 40 conferences. Laurie is a member of the ICD10monitor editorial board and is a permanent panelist on Talk Ten Tuesdays

Related Stories

CMS Proposes Knee and Hip Replacements

CMS Proposes Knee and Hip Replacements

The Inpatient Prospective Payment System (IPPS) Proposed Rule for the 2027 fiscal year (FY) signals another major acceleration in Medicare’s transition toward mandatory value-based care.

Read More

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

Mastering Breast Biopsy Billing: Guidance-Driven Coding for Accurate Reimbursement

Breast biopsy procedures may be clinically straightforward but accurately translating them into compliant billing can be anything but. In this focused webcast, Shawn Blackburn, CPC, CPMA, CIC, CRC, CCS-P breaks down how imaging guidance, lesion count, laterality, and payer expectations all impact how these procedures should be reported. Through clear explanations and real-world scenarios, you’ll gain practical insight into aligning clinical workflows with billing requirements, avoiding common pitfalls, and ensuring your documentation supports accurate reimbursement and compliance.

May 21, 2026

Mastering OB GYN Coding Accuracy: Precision Coding for Compliance and Reimbursement

Gain clarity and confidence in OB‑GYN coding with this expert‑led webcast featuring Sherri L. Clayton, RHIT, CSS. You’ll learn how to apply global maternity package rules accurately, select the right CPT codes for procedures and visits, and identify documentation gaps that lead to denials. With practical guidance and real examples, this session helps you strengthen compliance, reduce audit risk, and ensure accurate reimbursement for women’s health services.

May 14, 2026

2026 ICD-10-CM/PCS Coding Clinic Update Webcast Series

Uncover essential coding insights with nationally recognized coding authority Kay Piper, RHIA, CDIP, CCS. Through ICD10monitor’s interactive, on‑demand webcast series, Kay walks you through the AHA’s 2026 ICD‑10‑CM/PCS Quarterly Coding Clinics, translating each update into practical, easy‑to‑apply guidance designed to sharpen precision, ensure compliance, and strengthen day‑to‑day decision‑making. Available shortly after each official release.

April 13, 2026

2026 ICD-10-CM/PCS Coding Clinic Update: Fourth Quarter

Uncover critical guidance on the ICD-10-CM/PCS code updates. Kay Piper reviews and explains ICD-10-CM/PCS coding guidelines in the AHA’s fourth quarter 2026 ICD-10-CM/PCS Coding Clinic in an easy to access on-demand webcast.

December 14, 2026

Trending News

Featured Webcasts

Reengineering Utilization Management: Building an Adaptive Model for the New Payer Era

Traditional utilization management models can no longer keep pace with regulatory shifts, payer scrutiny, and operational pressures. In this webcast, Tiffany Ferguson, LMSW, CMAC, ACM, ACPA-C, introduces an Adaptive Model strategy that modernizes UM through role specialization, technology-driven workflows, and proactive, team-based processes. Attendees will learn how to restructure programs to improve efficiency, strengthen clinical collaboration, and enhance financial performance in a rapidly changing healthcare environment.

May 20, 2026

Compliance for the Inpatient Psychiatric Facility (IPF-PPS): Minimizing Federal Audit Findings by Strengthening Best Practices

Federal auditors are intensifying their focus on inpatient psychiatric facilities, using advanced data analytics to spotlight outliers and pursue high‑dollar repayments. In this high‑impact webcast, Michael Calahan, PA, MBA, Compliance Officer and V.P., Hospital & Physician Compliance, breaks down what regulators are really targeting in IPF-PPS admissions, documentation, treatment and discharge planning. Attendees will learn practical steps to tighten processes, avoid common audit triggers and protect reimbursement and reduce the risk of multimillion-dollar repayment demands.

April 9, 2026

Mastering MDM for Accurate Professional Fee Coding

In this timely session, Stacey Shillito, CDIP, CPMA, CCS, CCS-P, CPEDC, COPC, breaks down the complexities of Medical Decision Making (MDM) documentation so providers can confidently capture the true complexity of their care. Attendees will learn practical, efficient strategies to ensure documentation aligns with current E/M guidelines, supports accurate coding, and reduces audit risk, all without adding to charting time.

March 31, 2026

The PEPPER Returns – Risk and Opportunity at Your Fingertips

Join Ronald Hirsch, MD, FACP, CHCQM for The PEPPER Returns – Risk and Opportunity at Your Fingertips, a practical webcast that demystifies the PEPPER and shows you how to turn complex claims data into actionable insights. Dr. Hirsch will explain how to interpret key measures, identify compliance risks, uncover missed revenue opportunities, and understand new updates in the PEPPER, all to help your organization stay ahead of audits and use this powerful data proactively.

March 19, 2026

Trending News

Happy HIP Week! Sign up to win free access to our 2026 Coding Clinic Update Webcast Series! Click here to learn more →

Prepare for the 2025 CMS IPPS Final Rule with ICD10monitor’s IPPSPalooza! Click HERE to learn more

Get 15% OFF on all educational webcasts at ICD10monitor with code JULYFOURTH24 until July 4, 2024—start learning today!

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24