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Healthcare Business Review | Thursday, July 10, 2025
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Anesthesia expenses are complex, involving direct costs and services related to anesthesia, the overall duration of procedures, the intricacy of the cases, and the accessibility of healthcare providers.
Fremont, CA: The landscapes of ambulatory surgical centers (ASCs) and anesthesia services have been undergoing significant changes. These simultaneous developments have resulted in a heightened demand for anesthesia subsidies. This trend has intensified in the post-pandemic period, driven by a surge in the need for anesthesia providers, such as certified registered nurse anesthetists (CRNAs) and physician anesthesiologists.
The shortage of anesthesia service providers has been intensified by several macroeconomic influences, such as an aging workforce in the field of anesthesia, early retirements prompted by the COVID-19 pandemic, increasing demand for anesthesia services driven by generally favorable, albeit frequently unstable, economic conditions, and a rise in the number of procedures, particularly in cardiology, that necessitate anesthesia. This situation is further compounded by the ongoing transition of more complex cases to Ambulatory Surgical Center (ASC) environments.
Multiple Factors
Anesthesia costs are multifaceted, encompassing direct and anesthesia-related services, the total time involved, the complexity of cases, and the availability of providers. Additionally, traditional elements such as payer mix and patient volume play a significant role. It is essential to analyze these factors in greater detail:
Anesthesia Billable Service Time:
Payers regard this period as billable. Typically, it commences when the patient is admitted to the operating room or procedure room and concludes when the anesthesia provider hands over responsibility for the patient to the PACU nurse.
Payer Mix:
This metric can greatly influence financial outcomes. Typically, CMS and Medicaid provide the lowest reimbursement rates for anesthesia services. In contrast, private insurance may reimburse amounts two, three, or even five times higher than CMS offers for the same case.
OR Utilization:
This metric reflects the duration associated with billable anesthesia services and the volume of cases. A typical operating room utilization rate is 60 percent. An increase in this percentage indicates more potential for an Ambulatory Surgery Center (ASC) to decrease its payments to the anesthesia group.
Related Anesthesia Service Time:
This metric pertains to the duration that the anesthesia provider must allocate to deliver comprehensive anesthesia services to the facility. Typically, this time is non-billable, particularly when the anesthesia provider is involved in patient evaluations or quality assurance committees. In general, an increase in these duties correlates with a heightened need for financial support for the anesthesia provider.
Availability:
This is becoming an increasingly important consideration for Ambulatory Surgery Centers (ASCs). When an ASC aims to enhance the flexibility and availability of anesthesia services, the anesthesia group may request that the ASC assume some or all of the costs incurred without sufficient case volume to balance these expenses. During negotiations between ASC leadership and the anesthesia group, it is advisable to incorporate a notice period for terminating anesthesia services, enabling the anesthesia group to adapt and optimize productivity in other areas.
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