As the cost of anesthesia continues to rise, hospitals and health systems are grappling with increased financial pressure. Provider costs have surged, while Medicare reimbursement has fallen, and commercial reimbursement has largely remained flat. As a result, anesthesia stipends have increased significantly, prompting some hospitals to consider insourcing anesthesia services to save costs. However, this approach is often flawed and can lead to increased costs and diminished quality of care. Instead, outsourcing anesthesia services offers several critical advantages that hospitals should carefully evaluate.
1. Optimized Anesthesia Model for Quality Care and Patient Safety
An outsourced anesthesia provider can design and implement the best anesthesia model to ensure the highest quality care and patient safety. In the anesthesia care team model, anesthesiologists supervise Certified Registered Nurse Anesthetists (CRNAs) to provide safe and efficient coverage, and the anesthesiologist to CRNA ratio is adjusted based on surgical case and patient complexity. There is also the independent CRNA model, which can be effective in specific settings with lower acuity cases. Each of these models has distinct applications, and an experienced outsourced provider can determine the best fit for a hospital's unique needs.
Each hospital site has different requirements based on surgical volume, case complexity, and staffing availability, which must be reflected accurately in billing. Misalignment in these models can result in inefficiencies, compliance risks, and reimbursement challenges. Outsourcing ensures the correct model is implemented with the necessary regulatory and billing expertise, safeguarding both patient care and financial performance.
2. Maximized Throughput and Efficiency
Anesthesia serves as the engine of the operating room (OR), and efficient scheduling is crucial to hospital operations. An outsourced provider can analyze staffing models and resource allocation, consulting with local clinical and administrative teams to ensure optimized throughput and efficiency. By fine-tuning scheduling and workflow, hospitals can increase surgical case volume while minimizing delays and inefficiencies.
Beyond streamlining OR efficiency, outsourcing enables hospitals to maximize utilization of their procedural areas. By leveraging data and analytics, outsourced anesthesia providers can ensure the right coverage for OR and out of OR areas, reducing bottlenecks and ensuring more patients receive timely care. Efficient resource allocation across multiple sites and service lines leads to increased capacity and better OR performance.
3. Leadership and Culture Driven by Strong Recruiting and Retention Efforts
The anesthesia labor market is tighter than it has been in decades, making it increasingly difficult for hospitals to secure the talent they need to be successful. Outsourced anesthesia providers invest in building relationships with training programs to secure clinician pipelines for the future. They also have specialized recruiting departments dedicated to staffing anesthesia needs effectively. These capabilities drive a focus on building stable, full-time teams that minimize reliance on costly premium labor. A strong departmental culture, driven by effective leadership, enhances both provider satisfaction and patient outcomes.
With a dedicated focus on recruitment and retention, outsourced providers bring deep expertise in developing leadership and career growth opportunities within anesthesia teams. This results in a well-supported workforce, reduced turnover, and consistent care delivery. Building a cohesive team is crucial for creating a sustainable, high-quality anesthesia service that operates efficiently without the disruptions caused by constant staffing shortages.
4. Anesthesia-Specific Revenue Cycle Management (RCM)
Anesthesia billing is complex and differs significantly from other service lines. One of the key differences in anesthesia billing is that reimbursement per case is lower compared to other procedural specialties, making efficient revenue cycle management even more critical for a health system. A national outsourced provider, for instance, manages revenue cycle processes across hundreds of sites, leveraging scale to optimize collections, understands anesthesia specific payer negotiations, and streamlines claim processing. This breadth of experience ensures hospitals benefit from best practices in anesthesia billing, minimizing revenue leakage and maximizing financial outcomes. Without a dedicated, knowledgeable partner to manage denials and authorizations, hospitals may face increased claim denials and underpayments. A tenacious, compliant RCM partner that understands the specifics of anesthesia billing thus ensures optimized revenue capture and financial stability for the health system.
Conclusion: A Smarter Approach to Anesthesia Management
While insourcing may appear to offer cost savings, the reality is that it often results in higher expenses and reduced quality of care. Outsourcing anesthesia provides hospitals with the necessary expertise, efficiency, and financial optimization to navigate today's challenging healthcare landscape successfully.
Considering insourcing your anesthesia? Let NorthStar Anesthesia's experts conduct a side-by-side cost estimate for you, featuring a complimentary pro-forma build. Reach out to dennis.shin@northstaranesthesia.com to learn more.