Health Information Management

AHA calls for TCS contingency plan

HIPAA Weekly Advisor, May 23, 2003

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Poor, improper, or incomplete implementation of the transactions and code sets standards would lead to adverse changes in cash flow and even disruptions to patient care, according to the American Hospital Association (AHA).

AHA testified May 20 before the National Committee on Vital and Health Statistics' (NCVHS) Subcommittee on Standards and Security.

"Without a doubt, hospitals' greatest concern regarding implementing the HIPAA transactions standards is the enormous harm that could occur if there is a disruption to the existing claim submission and payment cycles," said George Arges, senior director of AHA's health data management group. "Because hospitals do not tend to have large cash reserves, adverse changes in cash flow could create disruptions to patient care. The possibility of even the slightest operational breakdown or system failure in the post-HIPAA implementation period, therefore, cannot be ignored or dismissed."

The association went on to stress the importance of end-to-end testing before the October 16 compliance date and urged HHS to issue industry guidance to ensure that all health plans and providers are prepared to process failures should implementation not proceed smoothly.

"It is important to note that we are not in anyway advocating for a delay in the October 16 compliance date," added Arges. "Instead, we are urging the Department to establish a system-wide implementation plan to ensure that any unintended negative effects do not cause irreparable harm to providers' operations and, ultimately, to their ability to provide uninterrupted quality patient care."

The testimony echoed earlier statements made in a May 19 letter to Jared Adair, director of CMS' Office of HIPAA Standards.

Go to http://www.hospitalconnect.com/aha/key_issues/hipaa/index.html and look under "What's New" to read more.



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