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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.
Background:
The mechanism for recording International Classification of Diseases (ICD) and diagnosis related groups (DRG) codes in a patient's chart is through a certified medical coder who manually reviews the medical record at the completion of an admission. High-acuity ICD codes justify DRG modifiers, indicating the need for escalated hospital resources. In this manuscript, we demonstrate that value of rules-based computer algorithms that audit for omission of administrative codes and quantifying the downstream effects with regard to financial impacts and demographic findings did not indicate significant disparities.
Methods:
All study data were acquired via the UCLA Department of Anesthesiology and Perioperative Medicine's Perioperative Data Warehouse. The DataMart is a structured reporting schema that contains all the relevant clinical data entered into the EPIC (EPIC Systems, Verona, WI) electronic health record. Computer algorithms were created for eighteen disease states that met criteria for DRG modifiers. Each algorithm was run against all hospital admissions with completed billing from 2019. The algorithms scanned for the existence of disease, appropriate ICD coding, and DRG modifier appropriateness. Secondarily, the potential financial impact of ICD omissions was estimated by payor class and an analysis of ICD miscoding was done by ethnicity, sex, age, and financial class.
Results:
Data from 34,104 hospital admissions were analyzed from January 1, 2019, to December 31, 2019. 11,520 (32.9%) hospital admissions were algorithm positive for a disease state with no corresponding ICD code. 1,990 (5.8%) admissions were potentially eligible for DRG modification/upgrade with an estimated lost revenue of $22,680,584.50. ICD code omission rates compared against reference groups (private payors, Caucasians, middle-aged patients) demonstrated significant p-values < 0.05; similarly significant p-value where demonstrated when comparing patients of opposite sexes.
Conclusions:
We successfully used rules-based algorithms and raw structured EHR data to identify omitted ICD codes from inpatient medical record claims. These missing ICD codes often had downstream effects such as inaccurate DRG modifiers and missed reimbursement. Embedding augmented intelligence into this problematic workflow has the potential for improvements in administrative data, but more importantly, improvements in administrative data accuracy and financial outcomes.
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