The Changing Face of Anesthesia Employment Models
Hospital and ASC leaders are constantly faced with countless decisions that can affect the quality of care, operational efficiency, and the financial health of their organizations. These leaders now have an important additional consideration—whether to change their anesthesia employment model.
Traditionally, healthcare providers would outsource their anesthesiologists from anesthesia provider organizations and negotiate contracts directly with national anesthesia groups. However, motivated by recent regulatory changes and shifts in the market, more healthcare providers are beginning to question whether the traditional method of contracting anesthesia services still makes sense. There now lies a compelling opportunity to rethink and potentially transform the traditional anesthesia employment model and how it is integrated and managed within healthcare facilities.
Why Rethink Anesthesia Employment Models Now?
The Federal Trade Commission’s (FTC) recent scrutiny of non-compete clauses in physician contracts has reshaped the dynamics of the national anesthesia service market. While these non-compete provisions have traditionally helped large anesthesia companies maintain a tight grip on their agreements, the FTC’s questioning of these practices marks a decisive move toward more open and competitive employee contracts.
Impact on Stakeholders
The repercussions of these changes are profound for national anesthesia groups. Faced with the possibility of losing contracts, many have started to modify their agreements to allow hospitals more freedom by employing anesthesiologists directly. By managing their anesthesia services, hospitals not only secure more direct oversight but also enhance their ability to tailor their services precisely to the needs of their patients and operations.
Evaluating the Shift to an Employed Anesthesia Model
If your hospital is paying an excessive stipend for anesthesia services and struggling to staff all anesthesia locations, the following activities can help you determine whether direct employment is a viable option.
Assess Service Requirements: Understand the specific anesthesia needs of your facility to determine the appropriate staffing levels.
Analyze Costs: Clearly outline the expenses associated with employing anesthesiologists versus contracting with a national provider.
Compare Revenue: Evaluate how the costs of providing anesthesia services stack up against the revenue generated from these services.
Administrative Support: Define what administrative structures are needed to support an employed group of anesthesiologists.
Recruit and Retain: Develop strategies to attract and retain top talent.
Initiate Transition Talks: Begin discussing with your current contracted anesthesia group about transitioning to an employment model.
The Benefits of In-House Anesthesia Management
Transitioning to an employed model can offer hospitals several advantages. Firstly, the financial benefits may be significant by adopting an employed model. This allows hospitals to eliminate the middleman, thereby cutting out the premium charged for their services. Additionally, managing anesthesia in-house reduces overhead costs, saving on the administrative fees that typically accompany external contracts.
Second, these anesthesia employment models give hospital leaders greater administrative control over the quality of the anesthesia services. Direct employment also allows for tighter integration of the practices within the overall healthcare delivery system. This can lead to better alignment with the hospital’s quality objectives and patient care standards, ensuring that anesthesiologists are more deeply involved in institutional planning and patient care coordination.
Moreover, hospitals that manage their services receive more consistent and tailored anesthesia care. By bringing these services in-house, hospitals can achieve a more cohesive, efficient and patient-centered management strategy.
The Road Ahead
The healthcare landscape is evolving, and with it, the structures that underpin critical services like anesthesia. Hospital leaders must stay informed and proactive in their approach to service management and anesthesia employment models to ensure their patients get the outcome they deserve while still meeting their bottom line.
Whether you're on the fence about employing your anesthesia providers or feel confident in your convictions, we can help. Visit our Anesthesia Services Page to see what we can do for you.