The Y2K problem results from the space saving programming practice of coding century data with only the last two digits of the year. Therefore computers will read the 2000 as 1900. This practice was not limited to computers. Many electronics and telecommunications devices have been manufactured with embedded date-sensitive software instructions that may also be affected. For example, Y2K may cause havoc with many office machines including telephone systems, voice mail systems, answering machines, fax machines, copiers and printers.
In the health care field, medical equipment and medical devices that contain hardwired computer chips or that use date sensitive software may be affected. These include X-ray machines, CT and MRI scanners, diagnostic testing and monitoring equipment, IV and infusion pumps, and even pacemakers. Hospital OR, ER, and ICU monitoring systems may malfunction or cease functioning. For physicians and institutions that utilize computerized medical records or management/billing software, Y2K could cause computers to alter data, to lose data completely, or even malfunction and "crash." Pharmacies that log prescriptions on their computer systems in the last days of 1999 could discover that such prescriptions have expired on January 1, 2000. Class action lawsuits have already been filed in New Jersey and Florida against Medical Manager, a manufacturer of medical management system software, alleging that it sold thousands of licenses for non-Y2K compliant versions of its software without disclosing such deficiency.
Because the problem extends beyond the practitioner's office to all entities with which they do business, even if the practitioner is Y2K compliant with respect to internal operations, outside factors may disrupt normal practice operations. Vendors and suppliers may not be able to fill orders or properly credit payment because of breakdowns of their inventory, delivery or billing processes. Payors may not be able to properly process and pay for submitted claims. Providers that exchange data or have computer link-ups with outside organizations (e.g., payors, suppliers, vendors, joint venturers, etc.) who are not Y2K compliant face contamination by noncompliant systems.
The degree to which Y2K will affect the healthcare industry is unknown. However, it has been estimated that to resolve this worldwide problem $600 billion will be spent rewriting 250 billion lines of code. Lloyds of London has estimated that the cost of litigation related Y2K problems will exceed $1 trillion.
To address the problem, sole practitioners, group practices, and their institutional counter-parts must methodically investigate and review each aspect of their practice to assess the versions of software being used to determine which devices are date sensitive. An external review and inquiry of all payors, vendors, suppliers and manufacturers is also necessary. All such third parties should be contacted and asked to identify the products and services utilized by the physician that could be affected and how they are addressing the problem. The vastness of the potentially affected areas cannot be over-stated. For instance, it has been reported that Baptist Health System has plans to send out as many as 10,000 or more audit and inquiry letters to all entities with which it does business.
Regardless of the size of your practice, the Y2K problem simply cannot be ignored. An assessment team involving your CPA, attorney, and qualified computer specialist should be assembled to evaluate the extent of the problem, any remedies that might be available, and any appropriate risk management and litigation preparedness strategies. For practitioners who do not make the Y2K issues a priority now, the year 2000 will not be a happy new year.