Issue link: https://beckershealthcare.uberflip.com/i/1013186
11 CFO / FINANCE WHO releases ICD-11: 5 things to know By Megan Knowles A er more than a decade in the making, the 11th edition of the International Classifi- cation of Diseases has been released by the World Health Organization. e ICD serves as a foundation for identifying global health trends and statistics and is used by health insurers whose reimbursements depend on ICD coding. Here are five things to know: 1. e new edition carries about 55,000 codes for injuries, diseases and causes of death. By compari- son, the 10th edition had 14,400 codes. For the first time, the ICD is completely electronic. "A key principle in this revision was to simplify the coding structure and electronic tooling. is will allow healthcare professionals to more easily and completely record conditions," said Robert Jakob, MD, team leader of classifications terminologies and standards for the WHO. 2. e new ICD will be presented at the World Health Assembly in May 2019 for adoption by member states and will go into effect Jan. 1, 2022. "is release is an advance preview that will allow countries to plan how to use the new version, pre- pare translations and train health professionals all over the country," the WHO stated. 3. To more closely reflect progress in medicine, the codes relating to antimicrobial resistance in the new ICD are more closely aligned with the Global Antimicrobial Resistance Surveillance System. 4. e new ICD can also better capture data regard- ing healthcare safety, meaning it will help identi- fy and reduce unnecessary events that may harm health, including unsafe workflows in hospitals. 5. is ICD has new chapters, including ones on traditional medicine and sexual health. Traditional medicine has not been classified in this system until now. e chapter on sexual health brings together conditions that were previously categorized in oth- er ways. e WHO also added gaming disorder to the section on addictive disorders. n Fitch: Minor headwinds coming for US children's hospitals By Alia Paavola U .S. nonprofit children's hospitals soon will feel the operational headwinds affecting the overall general acute healthcare indus- try, according to a report by Fitch Ratings. While the median "AA-" rating for stand-alone children's hospitals re- mains relatively strong because of their philanthropic draw, stable oper- ating margins and specialized clinical service offerings, the median op- erating margin for these specialized facilities fell both in 2016 and 2017. The median operating margin for children's hospitals declined sharply to 4.5 percent in fiscal year 2017 from 6.1 percent the year prior. Further, median operating earnings before interest, tax, depreciation and amor- tization fell as well, to 11.9 percent in fiscal year 2017 from 12.6 percent in fiscal year 2016. Children's hospitals may be vulnerable to the same volume erosion many general acute care hospitals are facing, especially as payers push val- ue-based contracts and patients become more price-sensitive. "The more aggressive push for risk-based contracts that have developed in several major metro areas could pose additional reimbursement pres- sure for those children's hospitals not yet structured to manage risk," ex- plained Kevin Holloran, senior director at Fitch Ratings. In addition, children's hospitals often are highly exposed to Medicaid as a payer, so governmental funding cuts will always remain a credit concern. Despite these minor operational stresses, the sector will continue to be insulated by governmental policies that strongly support pediatric ser- vices as well as healthy philanthropic support. n Washington hospital avoids closure, saves 1,000 jobs By Ayla Ellison A bankruptcy judge has approved Kennewick, Wash.-based Trios Health's plan to sell its assets to Brentwood, Tenn.-based RCCH HealthCare Partners, a move that will allow Trios to remain open and keep its 1,000 employees, according to the Tri-City Herald. The healthcare district that owns Trios Health filed for Chapter 9 bankrupt- cy in June 2017. Chapter 9 bankruptcy offers distressed municipalities protection from creditors while a repayment plan is negotiated. The health system emerged from bankruptcy after the district's unse- cured creditors approved a plan to sell Trios' assets. Scott Landrum, the healthcare district's interim CEO, told the Tri-City Herald if the plan had not been approved, the district would have been forced to close the hos- pital and lay off its 1,000 employees. Trios Health includes a full-service community hospital, a women's and chil- dren's specialty hospital, outpatient specialty offices and urgent care clinics. n