Anesthesia & O.R. Perspective Blog
When hospitals are presented with a high anesthesia subsidy request, many administrators may be concerned about the impact of negotiations and/or group replacement on the OR. But with experienced third-party guidance, you can successfully and amicably negotiate a lower subsidy … Continue reading
The 2012 Anesthesia Subsidy Survey Report is now available. See how your hospital’s anesthesia subsidy compares with the hospitals in our survey. Are anesthesia subsidies nationwide going up, down, or staying the same? What are the main drivers? What are … Continue reading
“Am I paying a subsidy because my anesthesia group can’t properly manage their revenue cycle?” This is one of the biggest concerns hospital CFOs have in paying an anesthesia subsidy. And in many cases it’s a valid concern for the … Continue reading
The anesthesia staffing matrix used to cover anesthetizing locations, whether it’s MD only or some mix of MD/CRNA, is typically decided by the anesthesia group. With a difference in medium compensation of more than $260,000 between the two types of providers ($423,500 for MDs vs. $158,000 for CRNAs), this decision can have a large financial impact on the group and, consequently, on the anesthesia subsidy paid by the hospital. There are numerous factors that affect this decision…
The number of anesthetizing locations a hospital system requires, and how these locations are staffed, is perhaps the single biggest contributor to anesthesia subsidy requests.
In a perfect world, anesthesia groups would provide services for only busy and efficiently-run ORs. OR downtime would be kept to a minimum so that nearly all of an anesthesia provider’s time would be billable for the group. The anesthesia group’s fixed costs would be spread across many high-revenue generating locations. Maximized revenue generation and controlled costs would allow the anesthesia group to self-sustain, and no subsidy from the hospital would be required.
But, (snap fingers) wake up! There’s no such thing as a perfect world.
Beginning in the mid-1990s, there was a dramatic drop in anesthesia MD and CRNA graduates, yet the number of surgeries, and thereby the need for anesthesiologists, was continually growing. This imbalance in supply and demand caused a dramatic increase in anesthesiologist compensation. In 2000, the average salary for an MD anesthesiologist was approximately $280,000 per year. Today, the average salary is $423,000. While CRNA compensation Continue reading
In 2008, hospitals were paying an estimated $4.2 billion in anesthesia subsidies annually. Three years later, where are we today? Are hospitals nationwide paying MORE or LESS today for anesthesia coverage, and what is contributing to the change? Take the 2011 Anesthesia Subsidy Survey and find out… Continue reading
So, your anesthesiology group has requested a yearly subsidy. Or, perhaps a higher subsidy than before. The first question that comes to a Hospital Executive’s mind is “Why?” The second, “How does this subsidy request compare with others in my State, and Nationally? Is it reasonable?”… Check out the results from HPS’ 2008 Anesthesia Subsidy Survey.
Over the past decade, the percentage of hospitals paying anesthesia subsides has skyrocketed from 15% to 75%. The magnitude of subsidy requests has also escalated dramatically, weakening a facility’s bottom line. But why? What drives the need for anesthesia subsidies? And how can hospital executives arm themselves in subsidy negotiations?
Hospital executives need to understand the four main drivers, or ‘legs’, of anesthesia subsidy requests and who controls each…