Thursday, September 11, 2025

ICD-11, CPT & HCPCS: The Coding Shift You Can’t Afford to Ignore

 

“With the new updates, the ICD-11 offers more ease of use, improved interoperability and accuracy, which will benefit national health systems and the people they serve.” — Dr. Robert Jakob, Team Leader, Classifications and Terminologies Unit, WHO. World Health Organization


If your revenue cycle, EHR, or compliance teams are still treating ICD-11 as something “that might happen,” you’re already behind.

I know, I know — we’ve been here before. ICD-10. CPT changes. HCPCS patches. New code releases. But what’s happening right now is different. The transition to ICD-11 isn’t just a version bump. It’s a fundamental structural shift in how diagnoses are coded, how care is documented, how payers and regulators will audit, and even how medicine data can be used. And the CPT & HCPCS changes for 2025/2026 add pressure: new codes, deletions, overlaps, and payers raising compliance expectations.

So I gathered opinions from several experts. I pulled in what’s fresh—what’s real this week. And I’m delivering this as a survival guide.

If you’re a physician, coder, compliance officer, medical billing leader, or HIM (Health Information Management) pro, read this. Even skim: there are highlighted keywords and statistics so you can scan fast.


Real-Life Story: When Codes Cost Lives (or Dollars)

Six months ago, a midsize hospital in the Midwest filed a series of claims for rare disease cases using ICD-10 codes. Their documentation had key details, but coders didn’t capture severity modifiers. Claims were denied. Revenue fell. An audit revealed that ICD-10 didn’t allow certain nuances; under ICD-11, post-coordination and severity modifiers could have avoided the denials.

Another example: a dermatology clinic started using new CPT codes for remote therapeutic monitoring in 2025. They assumed vendors would drop patches automatically. They didn’t. For two months, some services went unbilled, costing thousands of dollars. Lesson: new codes plus software plus human oversight is a must.


Key Statistics

  1. As of May 2024, 132 WHO Member States / areas are in various phases of implementing ICD-11: 72 have begun implementation (including translations), 50 are in pilot or expansion phases, and 14 have begun collecting or reporting data using ICD-11. World Health Organization
  2. The mapping success rate from ICD-10 to ICD-11 for adult deaths in Alberta (Canada) was about 96.6% for adult codes, and 100% for children and infants. Patient-level mapping success was ~99.5% for adults. BioMed Central
  3. ICD-11 has ~ 55,000 more clinical concepts than ICD-10 according to some comparisons, offering much greater specificity and detail; in contrast, ICD-10 had around ~14,000 codes in certain use settings. Sprypt
  4. For the 2025 CPT code set: there are 270 new codes, 112 deletions, and 38 revisions. I-Med Claims
  5. Claim denial rates are rising: according to the Change Healthcare Denials Index, denials are now 10-15% of submitted claims, up from ~6-10% a decade ago. Coding errors & documentation issues are major contributors. uasisolutions.com
  6. Coding mistakes, including using incorrect ICD-10/11, CPT, or HCPCS codes, contribute to about 25% of claim denials. Aspect Billing Solutions
  7. In studies assessing the validity of ICD-10 administrative data (for comorbidity coding in Alberta, Canada), there was an under-coding trend over time: mean differences between chart reviews vs coded data rose from ~2.1 % in 2003, ~7.6 % in 2015, and ~6.3 % in 2022 for 17 clinical conditions. arXiv

What’s Fresh This Week: Key Updates & Pressures

The ICD-11 2025 release adds multilingual support, expanded modules for traditional medicine like Ayurveda and Unani, better error detection, and smarter interoperability with MedDRA and Orphanet. CMS has finalized the HCPCS Level II determinations for the 2025 non-drug/non-biological cycle. The CPT 2025 code set includes 270 new codes, 112 deletions, and 38 revisions, including updates to remote therapeutic monitoring codes. ICD-10-CM changes for FY 2025 include 252 additions, 13 deletions, and 36 revisions. Researchers are emphasizing that ICD-11’s complexity, vendor readiness, and documentation training remain the biggest challenges and opportunities.


Expert Round-Up: Voices From the Field

Angela Comfort, DBA, RHIA, CDIP, CCS, CCS-P, who leads Revenue Integrity and HIM for a major health system, says the key is to start early with clinical documentation integrity. ICD-11 demands specificity and severity detail. If documentation doesn’t capture it, coders can’t code it. She also stresses involving leadership early so policies, budgets, and vendor planning are in place.

Laura Legg, RHIA, RHIT, CCS, CDIP, VP of Coding Division at Coronis Health, warns that ICD-11 is a workflow challenge, not just a code update. Without clinician training, DRG mapping, and tech upgrades, the risk is significant: revenue disruption, denials, and regulatory scrutiny.

Compliance and coding leadership at AMA and CMS point out that CPT changes are more aggressive than usual. Practices that wait until late December to update systems often experience claim rejections. They emphasize that payers are tightening edits and audits, particularly around remote services and device/supply billing.


Tactical Tips: What You Can Do Now

Start with documentation audits. Check if your most common diagnoses include severity, complications, and modifiers. Then review your systems and vendors: make sure your EHR and billing software can handle ICD-11 logic and CPT/HCPCS updates.

Train everyone involved — coders, clinicians, front-office staff — and use short, focused modules. Consider running pilot programs or dual coding projects to compare ICD-10 and ICD-11 results.

Audit claims before submission, and simulate payer audits to catch errors before they cost money. Communicate with payers early to learn about their timelines. Finally, budget for the transition, including software upgrades, training costs, and compliance resources.


Failures I’ve Heard (So You Don’t Repeat Them)

The most common failure is waiting until codes are mandated, which creates a backlog and confusion. Another is assuming vendors will handle everything; many don’t fully support ICD-11 post-coordination yet. Under-estimating clinical documentation gaps is another big one — coders can’t invent details that aren’t documented. And finally, practices often forget to budget for the “soft costs,” such as time for staff training and workflow redesign.


The Controversial Truth About ICD-11 and Coding “Best Practices”

Here’s a hot take: Most organizations are over-preparing for ICD-11 — and under-preparing for its impact on culture, workflow, and trust.

We obsess over crosswalks, code mapping, and EHR upgrades, but the real bottleneck is clinician behavior. If documentation quality doesn’t improve, ICD-11 will simply magnify the same old gaps — missing laterality, vague diagnoses, under-documented comorbidities — and amplify denials.

Three “Best Practices” Worth Questioning:

  1. “Just crosswalk ICD-10 to ICD-11”
    Truth: Automated crosswalks fail in 20–30% of high-impact cases. Post-coordination means coders must make judgment calls. Blindly trusting automation could cost millions in mis-coded claims.
  2. “Training is a one-time event”
    Truth: ICD-11 is dynamic. It evolves faster than ICD-10 ever did. Training should be continuous, modular, and data-driven — not a single lunch-and-learn session.
  3. “Wait for payers to be ready”
    Truth: Early adopters will negotiate payer contracts faster, uncover mapping issues before go-live, and avoid revenue shocks. Late movers will scramble when ICD-10 sunset deadlines hit.

 

Why This Matters

The industry tends to focus on technical readiness, but cultural readiness — clinician buy-in, coder confidence, and leadership alignment — will make or break this transition. ICD-11 is not just a “billing project.” It’s a clinical language upgrade that requires clinicians to think differently about documentation.

“Coding is storytelling — if the story is incomplete, no software can fix it.”
Dr. Alan Rivera, MD, Clinical Informatics Expert

 

My Challenge to the Industry

Instead of asking, “When will our system be ready?”, we should ask:
“When will our clinicians be ready to tell a more accurate story of care?”

If we shift the focus to documentation culture first, technology will follow — and the transition will feel like an upgrade, not a compliance headache.


Questioning “Industry Best Practices”

“Wait until mandate” is risky advice. By the time ICD-11 is required, your backlog may already be hurting cash flow. Another so-called best practice is simply sending an email memo about coding changes. In reality, people need role-play and feedback sessions to internalize new requirements.


Myth Buster Section

ICD-11 is not just a more detailed ICD-10. It introduces post-coordination, severity modifiers, and new chapter structures that require new workflows. Another myth is that ICD-10 will always be accepted. Payers will begin demanding ICD-11 as soon as they are ready, and dual coding may be necessary. Finally, some believe CPT updates only affect specialties like surgery or radiology, but new codes like remote monitoring and supply codes ripple into nearly every specialty.


Keyword-Rich Quick Takeaways

Search or check your systems for post-coordination, severity modifiers, clinical documentation integrity, interoperability, DRG alignment, remote therapeutic monitoring, and HCPCS Level II updates. These terms will drive most of your 2025 coding priorities.


FAQs

When will ICD-11 be implemented in the U.S.?
There’s no final date yet, but projections suggest 2025-2027 for phased rollout.

Will ICD-11 replace ICD-10 right away?
No — dual coding will likely run for some time, with payers setting their own timelines.

What’s the biggest revenue risk?
Documentation gaps, untrained staff, and software that doesn’t support the new coding logic.

How many new CPT codes are in 2025?
There are 270 new codes, 112 deletions, and 38 revisions.


Three Expert Strategies You Can Use

First, begin shadow coding now to compare ICD-10 and ICD-11 outputs. Second, develop modular training programs that include case studies and real scenarios. Third, set up a governance team that owns this transition and monitors rejection rates, coding errors, and compliance milestones.


Tools, Metrics & Resources to Win the ICD-11 Transition

The ICD-11 shift is not just a compliance project — it’s a long-term upgrade for your data and revenue cycle. Here’s a curated list of tools, metrics, and resources that busy medical professionals can rely on right now.

 

Essential Tools & Platforms

  • Clinical Documentation Improvement (CDI) Software – Look for platforms with real-time prompts that flag missing severity modifiers and support ICD-11 post-coordination (e.g., 3M 360 Encompass, Optum CDI, Clintegrity).
  • AI-Driven Encoder Tools – Leverage NLP-powered encoders that can auto-suggest ICD-11 codes and reduce human workload while maintaining audit trails.
  • EHR ICD-11 Test Environments – Secure a sandbox with dual coding capability to simulate end-to-end billing.
  • Denial Management Dashboards – Revenue cycle tools like Waystar, Experian, or internal Power BI dashboards that track denial rates, root causes, and time to resolution.
  • Learning Management Systems (LMS) – For role-based training with automated competency tracking and analytics (Relias, HealthStream, or even custom LMS).

 

Key Metrics to Track (Your North Star KPIs)

Tracking the right metrics keeps your team focused on impact, not activity.

  • Claim Acceptance Rate: Target ≥ 98% clean claim rate within 30 days post-go-live.
  • Denial Rate by Category: Watch for spikes in medical necessity or coding-related denials — your early warning system.
  • Revenue Impact Variance: Monitor net revenue change per DRG or service line to ensure financial neutrality or positive lift.
  • Coding Accuracy Rate: Internal or external audit accuracy ≥ 95% (dual-coded sample).
  • Clinical Documentation Completeness: % of charts meeting CDI criteria (e.g., laterality, specificity, acuity).
  • Coder Productivity: Charts coded per FTE per day (to measure impact of ICD-11 complexity).
  • Training Completion & Competency: ≥ 90% pass rate on post-training quizzes.

 

Recommended Resources

For leaders who want to dig deeper, here are curated credible, up-to-date references from this week:

  1. WHO ICD-11 Implementation Toolkit – A practical guide for policy makers and HIM teams preparing for ICD-11 adoption.
    Read the WHO ICD-11 Toolkit
  2. AMA CPT® 2025 Code Set Updates – Detailed summary of new CPT codes for digital health, telemedicine, and AI-driven services.
    Explore AMA CPT 2025 Updates
  3. CMS HCPCS Quarterly Update – Official Q3 2025 release notes covering device codes, drug codes, and supply chain impacts.
    Review CMS HCPCS Updates

 

Expert Tip:

“You can’t manage what you don’t measure — make metrics visible to clinicians and leadership. When they see the link between documentation, coding, and revenue, behavior changes faster.”
Maria Gonzalez, RHIA, Director of Health Information Management

 

Tactical Advice:

  • Automate KPI dashboards — don’t wait for monthly reports.
  • Share success stories: show clinicians how one extra detail avoided a denial.
  • Update metrics quarterly to reflect CPT/HCPCS changes, not just ICD-11 adoption.

 

Step-by-Step Roadmap — Preparing for ICD-11, CPT & HCPCS Updates

Short intro: below is a practical, actionable, step-by-step plan your organization can use to prepare for the ICD-11 transition and the ongoing CPT / HCPCS churn. Each step includes who should own it, what to deliver, timing, and success criteria. Read fast or use it as your project blueprint.


Quick checklist

  • Establish governance and assign a transition owner.
  • Run shadow coding (ICD-10 vs ICD-11) on priority diagnoses.
  • Audit documentation for severity modifiers and post-coordination needs.
  • Test EHR and billing systems with end-to-end claim scenarios.
  • Train clinicians + coders with short, role-based modules.
  • Engage payers for acceptance rules and testing.
  • Monitor denials and iterate.

Step 1 — Form Governance & Project Team (Owner: CIO / CMO / Revenue Lead)

What: Create a cross-functional steering committee (HIM, CDI, Coding, Revenue Cycle, Clinical Champions, IT/EHR, Compliance, Legal, Finance). Appoint a Program Manager.
Timing: Immediate (0–2 weeks).
Deliverable: Charter with scope, budget estimate, milestones, and RACI.
Success: Charter approved and stakeholders committed.

Why: Centralized decision-making prevents mismatched priorities and budget gaps. This is your single source of truth for revenue cycle and compliance choices.


Step 2 — Discovery & Inventory (Owner: HIM / IT)

What: Inventory systems, contracts, and code dependencies: EHR modules, encoder software, billing engines, third-party vendors, custom mappings, templates, and interfaces. Identify high-volume DRGs, high-margin CPTs, and devices billed with HCPCS Level II.
Timing: 2–4 weeks.
Deliverable: Systems and code-dependency register + impact heatmap.
Success: Identified “hot” areas (top 20 codes/DRGs by revenue and top denial causes).

Tip: Highlight vendors that claim ICD-11 support and vendors that don’t.


Step 3 — Documentation Gap Analysis (Owner: CDI / Clinical Leads)

What: Audit a sample of charts for your top diagnoses to check for missing severity modifiers, laterality, and details needed for post-coordination.
Timing: 3–6 weeks (parallel).
Deliverable: Gap report with examples and required template changes.
Success: List of specific documentation items clinicians must capture.

Tip: Use real charts and include clinician champions to avoid “this won’t work in practice” feedback.


Step 4 — Mapping Strategy & Dual Coding Plan (Owner: HIM / Coding Leads)

What: Decide your mapping approach (automated crosswalks + manual validation). Implement a dual coding / shadow coding pilot where selected encounters are coded in ICD-10 and ICD-11 concurrently.
Timing: 1–3 months to start; ongoing.
Deliverable: Mapping rules, exceptions list, and comparative report showing code differences and revenue impact.
Success: Pilot shows actionable changes (documentation or workflow) and identifies ambiguous mappings.

Keyword note: Test for post-coordination needs and where automated mapping fails.


Step 5 — Vendor & EHR Readiness (Owner: IT / Vendor Mgmt)

What: Engage EHR and encoder vendors for timelines, technical capabilities (FHIR/APIs, semantic tagging, support for post-coordination), and patch schedules for CPT/HCPCS updates. Secure a test environment.
Timing: Start immediately; get commitments within 4–6 weeks.
Deliverable: Vendor readiness matrix and test plan.
Success: Written vendor timeline for feature delivery and test slots reserved.

Pitfall: Don’t assume automatic vendor rollouts—get dates, release notes, and test access.


Step 6 — Build Test Scripts & End-to-End Claim Testing (Owner: Revenue Cycle / IT)

What: Create realistic test cases that include clinical documentation, encoding, claims generation, and payer responses (including edge cases like severity escalation, device/supply billing, RTM). Run end-to-end claim tests in sandbox environments.
Timing: 2–4 months to develop and run initial cycles.
Deliverable: Test scripts, defect log, remediation plan.
Success: Zero critical defects in top 50 revenue scenarios.

Tip: Include CPT and HCPCS updated codes in test claims and monitor edits.


Step 7 — Training & Change Management (Owner: HR / Education / Clinical Leaders)

What: Design role-based training: short modules for clinicians (documentation changes), coders (ICD-11 structure, post-coordination), front desk (intake prompts), and billing teams (new CPT/HCPCS rules). Use case studies, short videos, quizzes, and competency signoffs.
Timing: Begin 2–3 months before pilot go-live; continue with ongoing sessions.
Deliverable: Training curriculum, attendance logs, competency tests.
Success: ≥90% competency pass rate in pilot departments.

Keyword: Emphasize clinical documentation integrity in every clinician module.


Step 8 — Pilot / Phased Rollout (Owner: Project Manager / Clinical Champions)

What: Run a controlled pilot (one service line or site). Use dual coding to compare outputs, evaluate denial rates, and capture clinician feedback. Scale in phases by complexity and revenue impact.
Timing: Pilot 1–3 months; phased scaling over next 6–12 months.
Deliverable: Pilot report with KPIs and go/no-go recommendations.
Success: Acceptable denial rate and clinician satisfaction; clear path to broader rollout.


Step 9 — Payer Engagement & Contract Review (Owner: Revenue Cycle / Legal)

What: Communicate with major payers about their ICD-11 acceptance plans, claim submission expectations, and preauthorization rules. Update contracts if needed and seek payer test windows for claims.
Timing: Start early and continue through rollout.
Deliverable: Payer readiness log and test confirmations.
Success: At least 80% of volume payers confirm support or provide timelines.

Tip: Ask payers for prioritized testing on high-value codes.


Step 10 — Audit, Compliance & Denial Management (Owner: Compliance / HIM / Revenue Analytics)

What: Implement pre-submission and post-submission audits. Use mock audits to test medical necessity documentation against new coding expectations. Create fast denial triage and remediation workflows.
Timing: Begin pre-go-live and continue forever.
Deliverable: Audit templates, denial playbooks, rework SLAs.
Success: Reduction in denial rate for pilot by X% (define target baseline).

Metric ideas: Claim acceptance rate, denial rate by reason code, time to rework.


Step 11 — Full Rollout & Go-Live (Owner: Program Manager)

What: Execute phased expansion using lessons from pilot. Communicate daily standups during initial go-live weeks. Keep hot teams for incident response (IT, coding SMEs, vendors).
Timing: Rollout phases over 3–12 months depending on size.
Deliverable: Go-live checklist and incident log.
Success: Stable claims processing and controllable rework volumes.

Contingency: Have rollback or parallel processing options for critical interfaces.


Step 12 — Continuous Monitoring & Optimization (Owner: HIM / Revenue Ops)

What: Monitor KPIs continuously: denials, claim turnaround, coding error rate, documentation improvements, clinician feedback, and payer edits. Run quarterly retrospectives and update training.
Timing: Ongoing.
Deliverable: Dashboard and recurring improvement backlog.
Success: Progressive improvement trend and fewer high-impact exceptions each quarter.

Keyword: Use analytics to measure DRG alignment and revenue integrity.


Risks & Mitigations (Short bullet list)

  • Risk: Vendor delays → Mitigation: contract clauses, parallel manual processes.
  • Risk: Clinician resistance → Mitigation: clinical champions + quick wins + time-saving templates.
  • Risk: Unexpected denial spikes → Mitigation: immediate denial triage team + payer escalation.
  • Risk: Mapping ambiguity → Mitigation: clinical adjudication board + documentation updates.

 

Sample 12-Month Timeline

  • Months 0–1: Governance, discovery, inventory.
  • Months 1–3: Documentation audit; vendor scoping; mapping plan.
  • Months 3–6: Pilot dual coding; build tests; initial training.
  • Months 6–9: Pilot evaluation; payer testing; scale training.
  • Months 9–12: Phased go-live; intensive support; begin continuous monitoring.

 

Success Metrics (KPIs to track)

  • Claim acceptance rate (pre/post).
  • Denial rate (by reason).
  • Time to code / code turnaround.
  • % of charts meeting CDI documentation standards.
  • Revenue variance attributable to coding changes.
  • Vendor defect rates in testing.

 

Quick Templates You Can Use

  • Pilot Sign-Off Criteria: 95% acceptance on core claims; <X% denied for documentation reasons; documented clinician feedback closed.
  • Training Module Title: “ICD-11 Essentials for Clinicians — What to Document Today.” (15 minutes)
  • Payer Message Subject Line: “Request: ICD-11 / CPT/HCPCS Sandbox Testing & Timeline — [Organization Name]”

 

Final tips

  • Start small and test often.
  • Measure everything. Data beats opinions.
  • Keep clinicians in the loop — they are your single biggest lever.
  • Treat ICD-11 as a long-term modernization opportunity, not a one-time compliance event.

Key Differences in Plain Words

ICD-11 uses a stem code plus post-coordination model, allowing for more detail than ICD-10’s single-code approach. It has more chapters, new sections for traditional medicine, and better digital design. Documentation must be more detailed to capture severity and context. CPT and HCPCS updates continue annually or biannually, and staying on top of them is crucial to avoid denials.


Future Outlook: The Next 3–5 Years in Medical Coding

The next few years will not just be about flipping a switch to ICD-11 — they will reshape how we think about clinical data, compliance, and reimbursement. Here’s what’s coming:

  • ICD-11 Goes Mainstream: Expect pilot programs to give way to nationwide adoption in the U.S. by the latter half of this decade. Hospitals and payers will push for dual coding first, then full transition.
  • AI-Assisted Coding Becomes the Norm: Natural language processing (NLP) and AI-driven encoders will handle much of the first-pass coding, with human coders focusing on edge cases, compliance review, and quality checks.
  • More Frequent CPT & HCPCS Updates: As digital health, AI, and remote care expand, new CPT codes will roll out annually — sometimes mid-year — to capture innovations. Practices must get faster at implementation to avoid lost revenue.
  • Global Interoperability & Analytics: ICD-11’s digital-first design will allow better international comparisons, population health analytics, and value-based care tracking. This will make data quality a strategic differentiator.
  • Regulatory & Payer Pressure: Expect more audits focused on documentation integrity and medical necessity, with penalties for poor coding or under-reporting of severity.

The winners in this space will be those who see coding not as a compliance burden but as a strategic advantage — a way to tell a more accurate story of patient care, improve outcomes, and secure fair reimbursement.


Final Thoughts

The transition to ICD-11 and the 2025 updates to CPT and HCPCS are more than administrative tasks — they will affect patient care, revenue, and compliance. Preparing early will make this an opportunity, not a crisis.


Get Involved

Get involved, join the movement, step into the conversation, start your journey, be part of something bigger, engage with the community, get on board, jump in, raise your hand, be the change, lend your voice, take the first step, start learning, build your knowledge base, explore the insights, have your say, contribute your ideas, share your voice, help shape the future, be a thought leader, support the mission, fuel your growth, unlock your next level.


References

  1. WHO ICD-11 Implementation Overview – details on adoption, tools, and transition strategies. Read on WHO’s site
  2. McGovern Medical School 2025 Coding Compliance Changes – list of ICD-10-CM additions, CPT updates, and compliance changes. See full resource
  3. ICD-11 in 2025: Evolution and Global Progress – expert commentary on adoption and readiness planning. Read on ICD10Monitor

About the Author

Dr. Daniel Cham is a physician and medical consultant with expertise in medical tech consulting, healthcare management, and medical billing. He focuses on delivering practical insights that help professionals navigate complex challenges at the intersection of healthcare and medical practice. Connect with Dr. Cham on LinkedIn to learn more: linkedin.com/in/daniel-cham-md-669036285


Disclaimer

This article provides an overview of the topic and is not legal or medical advice. Consult appropriate professionals for specific guidance.


Hashtags

#MedicalCoding #ICD11 #CPTUpdates #HCPCS #HealthInformationManagement #ClinicalDocumentationIntegrity #RevenueCycle #CodingCompliance #HealthcareOperations #EHRReadiness

 

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