Insight At Your Fingertips
Whether you are a hospital paying an anesthesia subsidy or a group trying to maximize profitability, it is in your best interest to monitor and optimize anesthesia revenue realized from payers and patients.
Subsides may be structured in many ways, the most common being fixed stipends and revenue guarantees. Each structure has pros and cons, but in a sudden financial upheaval caused by COVID-19, hospitals or anesthesia groups will be significantly harmed depending on the structure chosen.
As a national anesthesia consulting firm, we are seeing hospitals and healthcare systems change or attempt to change their incumbent anesthesia groups with increasing frequency.
Hospital-based provider groups are a vital bridge between the business leaders of the facility and its medical staff. Hospital executives frequently cite a lack of leadership as a limiting factor in the performance of their facility-based groups.
In the Healthcare environment of 2018, it seems that "bigger is better" is the mantra from all sides. We've got hospital systems consolidating, huge insurers combining, giant national provider groups forming...
Howard Greenfield, MD, principal of management and consulting firm Enhance Healthcare, described several steps to follow when deciding whether to sell one's anesthesia practice.
Anesthesia groups have many issues to deal with, including pressure on reimbursement and hospital subsidies. Despite these concerns, it is important to remember that for many groups, their key asset is their hospital contract.
Hospital finance leaders can increase profit from operating rooms by developing performance improvement plans around key statistics, such as utilization, delays, and unique morning starts.
Here are four examples of ways anesthesia providers can help hospitals reach these goals.
Drs. Greenfield and Stiefel present a new framework hospitals can use when thinking about anesthesia services.
Anesthesiologists can affect patients' satisfaction by overseeing preoperative preparation, ensuring the patient understands the process for the day of surgery and managing postoperative pain.
Some key preoperative responsibilities that can improve intraoperative metrics, including start times, turnover time and OR utilization
Knowing your options, as well as understanding your needs, will help you choose the model that is best for your hospital, your surgical staff and your community.
Hospitals have specific goals regarding patient and surgeon satisfaction as well as growth initiatives. Your facility's anesthesia model should help you meet those goals.
Critical care. OB. Pain. Cardiovascular. Pediatric. Anesthesia sub-specialties have evolved to address an often complex and challenging subset of patients. Each come with their own set of needs.
The needs of each of these stakeholders are diverse and when taken together, serve as a way to measure the affect of an anesthesia model on the health of the overall facility.
The healthcare environment has dramatically changed in recent years, and anesthesia business models are evolving as well. If current trends hold, three types of business models will emerge as the industry standard.
With eighty percent of hospitals paying an anesthesia subsidy, finding ways to reduce these costs – without risking quality – is critical, while supply-demand imbalances dramatically drive up subsidy requirements.
A “pre-operative” assessment of your own practice will reveal how your group will look to a possible partner, investor or employer before your group is in the middle of negotiations with another entity.
Enhance Healthcare Consulting has seen approximately a fivefold increase in the issuance of RFP’s, with 30% of hospital based RFP processes resulting in a provider change.
The forces driving the change are many, but one common denominator has emerged: hospitals under intense pressure to perform in order to survive.
The size and scope of these entities could not have been envisioned just a decade ago. The entities profiled below represent those that, for the time being, appear to have successfully positioned themselves in the new market.
Due to lack of oversight of the anesthesia revenue cycle, this small Southwestern health system suspected it was not capturing all professional fee revenue, and wanted more accurate and timely financial reporting.
The RFP process has become much more standardized, and the options for change more robust, while at the same time the financial and operational imperative for change has escalated.
A tertiary care facility in the South, part of a four hospital system needed to improve coverage amongst all its facilities without incurring a substantial increase in cost.
SITUATION: Three years in a row the amount of subsidy had increased – 15%, 12% and 20% respectively – despite the fact that their coverage requirements had not changed.
SITUATION: An important Surgical Service Line expansion forced a West Coast community hospital to face a dramatic increase in anesthesia costs that threatened its financial viability.
SITUATION: A 321-bed community hospital in the Southeast United States was experiencing significant financial challenges due to its high anesthesia costs.
Distributing a request for proposal (RFP) for a HBP service line can often be a painful process and one which should not be taken lightly.
SITUATION: A major hospital system faced serious financial challenges in attempting to meet critical needs in its local communities.
Dr. Robert Stiefel discusses the heightened importance of OR efficiency to hospitals.
Dr. Greenfield shares insights on how anesthesia groups can stay afloat in the face of growing group consolidation.