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Subject: [ISN] Health Insurers Hindered By Outdated IT
From: InfoSec News <alerts () infosecnews ! org>
Date: 2011-12-28 8:35:38
Message-ID: alpine.DEB.2.02.1112280235280.9665 () infosecnews ! org
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http://www.informationweek.com/news/healthcare/admin-systems/232301063
By Neil Versel
InformationWeek
December 27, 2011
Many health insurers will need to upgrade their IT infrastructure in the
next few years to meet coming mandates and respond to healthcare reform
efforts, but cost and short timetables could be significant obstacles, a
new survey reveals.
In a survey of 106 leaders from healthcare payers, 35% of respondents
listed cost or return on investment as their top concern with
implementing new, organization-wide IT systems. Nearly a quarter
participating in the poll from HealthEdge, a Burlington, Mass.-based
developer of management software for the health insurance industry, said
that they were most concerned with disruption to regular business flows.
About 21% cited short deadlines to comply with mandates, such as the
switch to ICD-10 coding by October 2013.
Only 22% said they were fully prepared to support ICD-10, with
remediation plans in place and system upgrades underway. About 37%
indicated that they were "somewhat prepared," but not sure that they
would be able to meet the deadline, while 36% were just starting to
ready themselves for ICD-10. Just over 5% have not finished evaluating
their IT capabilities or created a remediation plan for the new coding
system.
"This is not terribly surprising," HealthEdge executive VP Ray
Desrochers, told InformationWeek Healthcare. "A lot of the largest
payers got their act together early," Desrochers said, but noted that
the tier just below the biggest insurance companies did not really start
on ICD-10 until this year, even though federal officials set the
deadline in January 2009.
[...]
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