A retrospective analysis using comorbidity detecting algorithmic software to determine the incidence of International

Eilon Gabel1, Jonathan Gal2, Tristan Grogan3

  • 1University of California at Los Angeles David Geffen School of Medicine, Los Angeles, CA, USA. egabel@mednet.ucla.edu.

Insights

Automated algorithms identified significant omissions in International Classification of Diseases (ICD) coding, leading to inaccurate Diagnosis Related Groups (DRG) assignments and substantial lost revenue. Improving ICD code accuracy through technology can enhance financial outcomes.

Area of Science:

  • Health Informatics
  • Medical Coding Systems
  • Healthcare Financial Management

Background:

  • Manual review by certified coders for International Classification of Diseases (ICD) and Diagnosis Related Groups (DRG) codes is standard practice.
  • High-acuity ICD codes are crucial for justifying DRG modifiers and indicating necessary hospital resources.
  • Previous assessments of rule-based algorithms for auditing administrative codes showed no significant disparities in financial or demographic impacts.

Purpose of the Study:

  • To evaluate the effectiveness of rule-based computer algorithms in identifying omitted ICD codes.
  • To quantify the downstream financial and demographic impacts of ICD code omissions.
  • To assess the potential for augmented intelligence in improving administrative data accuracy.

Main Methods:

  • Utilized data from the UCLA Department of Anesthesiology and Perioperative Medicine's Perioperative Data Warehouse (EPIC EHR).
  • Developed and ran algorithms for 18 disease states against 34,104 hospital admissions from 2019.
  • Analyzed ICD code omissions, DRG modifier appropriateness, potential financial impact by payor class, and miscoding by ethnicity, sex, age, and financial class.

Main Results:

  • 32.9% of admissions had disease states without corresponding ICD codes.
  • 5.8% of admissions were eligible for DRG modification, with an estimated lost revenue of over $22.6 million.
  • Significant p-values (<0.05) indicated disparities in ICD omission rates across payor classes, ethnicities, sexes, and age groups compared to reference groups.

Conclusions:

  • Rule-based algorithms effectively identified omitted ICD codes in inpatient claims using structured EHR data.
  • Missing ICD codes resulted in inaccurate DRG modifiers and significant under-reimbursement.
  • Integrating augmented intelligence into the coding workflow can enhance administrative data accuracy and financial performance.
Abstract

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