EHC Insights

Anesthesia Subsidies: Putting It All On the Table

Hospitals are experiencing a dramatic increase in requests for financial support from their anesthesia service providers, a situation that has been exacerbated by the pandemic. The Enhance Healthcare database, which contains over 120 hospitals, shows the average subsidy per anesthetizing location skyrocket to $185,000 for contracts signed in the last 3 years, a dramatic 30% increase from the $132,000 per anesthetizing location the 3 years prior. This frequently puts total hospital subsidies in the millions or tens of millions of dollars in annual subsidy, enough to meaningfully impact the facility’s bottom line.

The 4 factors that affect anesthesia subsidies:

  1. Fair Market Value Compensation
  2. Required Staffed Anesthetizing Locations
  3. Anesthesia Staffing Model
  4. Anesthesia Revenue Cycle Performance.
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