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Thread: ICD-10 Budget Planning (Capital Versus Operational)

  1. #1
    Join Date
    Apr 2007
    Columbus, OH

    Default ICD-10 Budget Planning (Capital Versus Operational)

    AAPC: Back to School
    Hi Everyone,
    I am currently submitting budget request for the ICD-10 efforts for 2011. A question that has asked by the finance/accounting department is whether or not the project is considered as a Capitalizable or an Operational Project.

    I'm hoping you can share with me you're organization's decision and perhaps a few reasons why its Capital versus Operational.

    At this point, we're submitting the project as Capital but there are steering committee team members that do not believe it should be Capital.

    Chih Lee

  2. #2
    Join Date
    Apr 2007
    Oil City



    It would possibly be considered both. If you have completed your impact analysis and identified any hardware needs those are usually capital, however, education, training and those types are normally not considered capital expenses. However, check with your organization as sometimes they do have different criteria for what is considered a capital expense. Good luck to you.
    Rhonda Buckholtz, CPC, CPC-I, CGSC, COBGC, CEPDC, CENTC
    Vice President, ICD-10
    800-626-2633 ext 183
    Fax: 814-217-0447

  3. #3

    Thumbs up Both capital and operating expenses --and a question

    Hi, Thanks for your significant question! As a hospital administrator for 20 years --the answer would be everywhere I worked "both" . You have to break down items that have a depreciation costs that are written off in hospital accounting vs items that your facility deems operational (labor, supplies," purchases > $100" is a common definition).

    Would you or someone identify the best budgeting tools for I am currently trying to provide budget manual for hospitals to use to prepare 2012 . The three major components that are consistently used by many organizations are:
    1. IT hardware /software
    2. Implementation productivity losses (costs)
    3. Training

    And I have references from AAPC ICD 10 CM two day workshop which includes budget info but it was practice based and I am facility based.

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