Anesthesia Finances in the Age of COVID-19 3

PART 3 – Impact of Responses on Post Virus Performance
April 14, 2020

In Part 1 and Part 2 of Anesthesia Finances in the Age of COVID-19, we described the impact a projected 80% decrease in anesthesia group professional revenue would have on anesthesia financials in three distinct scenarios. First with a fully supported anesthesia staffing model (impact of both a flat subsidy and revenue guarantee); second with a 50% reduction in staffed anesthetizing locations; and third, in addition to the reduced locations, a superimposed 50% reduction in provider compensation levels. While our focus in the previous models was on the immediate financial impact on both contracted entities, this installment will attempt to analyze the impact on facility finances in the first few months after the virus threat has stabilized to the point where elective surgical cases are able to resume.

Depending on a wide variety of factors including the percentage of elective cases prior to the shutdown, service line mix, payer mix, and baseline subsidy structure, each hospital will have unique implications and responses “During the COVID-19 (“DC-19”)” crisis. Clearly the path taken during the crisis will impact the position of a healthcare system to accommodate a return of surgical volume, which may include an overshoot due to pent up demand.

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