Medical Clinics Risk Funding If Y2K Problem Is Ignored

The Year 2000 is upon us — likewise the year 2000 problem.

Year 2000, or Y2K as it has become known through frequent cultural references, is not only a global-scale issue but presents very real implications for small businesses. Even conservative estimates by economists tell us that 7 percent of small- to medium-sized businesses will go bankrupt as a result of the Y2K bug.

A far-reaching example of a small- to medium-sized business that will feel the Y2K-crunch is one virtually all consumers rely on: private practice medical clinics. The Year 2000 problem has the potential to wreak havoc on everything from a clinic’s patient record systems to claims for payment issued to insurance groups and other payers like Medicare.

In fact, in an effort to acclimate clinics to Year 2000 compliance before the crisis hits, Medicare has issued a mandate to all private practice clinics that they must upgrade their current practice management systems by October. If this fails to happen, Medicare has said it will refuse to pay any claims filed electronically on systems that are not Year 2000 compliant.

To be sure, this issue holds more relevance for some medical clinics than others. The issue will be especially acute for clinics that predominantly receive payment through Medicare claims. These will include clinics in areas heavily populated by retirees — Bella Vista, for example — or clinics with specialties such as ophthalmology.

Regardless of the business category — from medical clinics and other service providers to retailers — office managers of small- to medium-sized businesses should consider the following recommendations in their Y2K woes:

• First, don’t let the switch to a Year 2000 compliant system scare you. It’s probably not as massive an undertaking as you think. Depending on the software upgrade, most implement-ations of new systems can be made almost seamlessly, with a minimal amount of rekeying of data or patient information. From start to smooth integration, the process could take as little as two weeks with the correct hardware in place.

• Second, if your current management system is not Windows-based, consider an upgrade that is. Given that nine out of 10 computers today are shipped with Windows already installed, an investment in a Windows-compatible system is clearly a smart investment in the future of your business or practice. The bottom-line thinking here is to not panic because of a perceived deadline but to make an informed decision about a system you will feel good about three years from now, once the Y2K problem has come and gone.

Y2K has implications for us all, with the continued timely and efficient delivery of health care a critical concern. Use the next year, and your business’ budget for system upgrades, wisely, and enjoy a much easier entry into the next millennium. n

Ancil Lea, president of Ancil Lea consulting, is a 10-year veteran of helping private practice clinics implement management systems. He will speak at 1 p.m. Aug. 25 at the Holiday Inn Convention Center in Springdale.