Hospital Subsidies

[deleted87051]

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Some actual numbers in this article.

https://www.anesthesiologynews.com/PrintArticle/74175

 

[NICMAN]

Well, clearly none of these groups are making any profit.

 

[aneftp]

I’d like a focus on hospital facility costs per surgical or anesthesia procedure.

That tells you the real cost and margin involved.

Hospitals will inflate how much it cost to run a hospital when a lot of waste involved in overhead.

 

[IlDestriero]

They can lose $1M/month for every OR that is closed because of staffing problems or they can pay the necessary subsidy to the anesthesia group. They are welcome to not pay, say we are overpaid, etc. but that will end with 2x as much floating the Locums revolving door until they wake up. This is economics 101 and the C suite seems to be full of business school dropouts. Maybe that’s not covered in the online MBA?

 

[deleted87051]

How big are the groups that are getting $25-30mil subsidies?

 

[ryanjmy]

Medicare reimbursement for anesthesia professional services is so far out of line with the current market I don’t know why we bother calling it a subsidy. It probably covers a third of the labor costs to staff a case. It was $20/unit when I started residency and it’ll be $20/unit when I retire.

The money is absolutely there to support the market but it has to go through admin first so strings can be attached.

 

[aneftp]

Medicare reimbursement for anesthesia professional services is so far out of line with the current market I don’t know why we bother calling it a subsidy. It probably covers a third of the labor costs to staff a case. It was $20/unit when I started residency and it’ll be $20/unit when I retire.

The money is absolutely there to support the market but it has to go through admin first so strings can be attached.

Playing devils advocate. Big companies like usap charge up to $150/unit for commercial insurance

ive cover a gi center as independent contractor and gotten physical check for $900 for a 12 min colonoscopy. That’s around 6 units of work. 6 x $150 equals $900.

(granted most commercial insurance pays $60/unit (those in California) to $150/unit

Do you think anesthesiologist should be getting $900 for a 12-15 min colonoscopy??

That’s a dirty question the ASA and the AANA does not want to ever answer.

Being a middle of the road guy.

Most commercial insurance will pay around $90/unit. Combine with Medicare $20/unit.

You are talking around $55/60/unit Average

Since most anesthesiologists who are considered full time generate around 12k units

That would put their income around 650k. Which is what I consider market rate for a 40 hr a week anesthesiologist taking 10 weeks of vacation.

 

[crash2500]

How big are the groups that are getting $25-30mil subsidies?

I think it's based on number of anesthetizing locations which I've heard is about $250-300k per location.

 

[aneftp]

How big are the groups that are getting $25-30mil subsidies?

My last one was 20 anesthesiologists and 45 crnas covering 3 sites.