Home >Newsletters >March 2002
 
ASA NEWSLETTER
 
 
March 2002
Volume 66
Number 3
 
Medicare and the Anesthesia Shortage — Increasing Our Chances for Survival

Ross J. Musumeci, M.D.



ASA members recently received an urgent communication regarding plans by the Center for Medicare & Medicaid Services to reduce the Medicare Fee Schedule by 5.4 percent effective January 2002 and urging ASA members to contact their legislators to voice their objection. The reaction of Massachusetts anesthesiologists who are currently working in the midst of a severe statewide personnel shortage may be different from anesthesiologists in other states, but it also seems that our situation provides a preview of what is to come in the rest of the country if the personnel shortage continues to worsen. With those considerations in mind, it seems appropriate to share the Massachusetts perspective.

The situation anesthesiologists in our state currently face makes a 5.4-percent change in the Medicare physician fee schedule irrelevant. That is not to imply that ASA should not bring such matters to our attention. It seems, however, that complaining about a 5.4-percent reduction in Medicare when current rates are already so egregiously low is like worrying about a toaster fire in the kitchen when the entire second story of the house is ablaze.

The personnel shortage in Massachusetts has reached a level that is significantly impacting care in many community hospitals. We increasingly hear from hospital administrators and anesthesiology department chairs that their departments are on the verge of dissolving as more and more anesthesiologists are lured away to other states with a lower cost of living and higher reimbursement. A survey of anesthesiology departments done by the Massachusetts Society of Anesthesiologists confirms that group administrators are being forced to triage the allocation of their resources as the number of available anesthesia providers continues to decline. 1

Multihospital practices such as ours are under increasing pressure to compete with higher salaries in other states, so we must maximize our reimbursement. That means that hospitals with the lowest reimbursement will be the first to lose services when there are no longer enough providers. The same can be said of single-hospital groups: those with the worst payer mix are likely to suffer first. Since Medicare rates are currently 60 percent below commercial rates and dropping, it is an inescapable conclusion that hospitals with large Medicare populations are most likely to feel serious effects of the personnel shortage first.

The Medicare Fee Schedule has been a problem for anesthesiology since its implementation in the early 1990s. ASA has been working through the American Medical Association/Specialty Society Relative Value Update Committee (RUC) to make the case that Medicare reimbursement was unfairly calculated and that anesthesiologists were disproportionately hurt by the new fee schedule. That is a valid argument, but it is important to understand that the problems with Medicare now go well beyond the issue of fairness. The personnel shortage has now turned it into an issue of access to care for seniors.

Anesthesiology groups in economically disadvantaged states such as Massachusetts are faced with issues that necessitate hard decisions about how to allocate their resources. Disgracefully low Medicare rates are creating a situation in which hospitals with Medicare-heavy populations are unable to sustain viable anesthesia groups without making a sizable supporting payment of some type. However, many of these hospitals are already in deficit-spending mode. As you consider this problem, ask yourself what impact a 5.4-percent change in Medicare would have on your decision to allocate personnel if you did not have enough anesthesiologists to serve all of your locations. Would it matter whether Medicare is 60 percent or 65 percent below commercial payers?

Those who live in states that have not yet felt the impact of the personnel shortage may have empathy for our situation and may be breathing a sigh of relief that they are not faced with such decisions. If so, hold that sigh. Consider the fact that Massachusetts is not the only state currently having this type of problem and that the shortage is expected to worsen before improving.

It is imperative that ASA members re-evaluate the amount of time and money they spend being active in politics. The percentage of anesthesiologists who contribute to the ASA Political Action Committee is disgracefully low; the numbers that actually visit their political representatives is even lower, and we are unlikely to be successful in our efforts to improve our situation without participating vigorously in the political process. If the blatant unfairness of the Medicare Fee Schedule was not enough to motivate anesthesiologists to take action in the political arena, then please consider becoming active for the purpose of protecting senior citizens’ access to anesthesia care in economically disadvantaged states.

It also is important that ASA leadership consider a more aggressive stance in its challenge of the Medicare Fee Schedule. A 150-percent increase would be necessary to make Medicare rates comparable to commercial rates, so it seems safe to say that something over a 100-percent increase will be needed to make Medicare rates even close to competitive for the increasingly limited anesthesia resources available. Instead of trying to prevent a 5.4-percent decrease in Medicare, ASA should be telling Congress that senior citizens’ access to anesthesia care in many states depends upon a significant increase in the Medicare reimbursement rates for anesthesiologists. The fact that this argument is politically difficult does not make it any less true or just. If anesthesiologists choose to avoid making this case because it seems they cannot win, they admit to failure and forsake their role as patient advocates. In the words of hockey great Wayne Gretzky, “You miss 100 percent of the shots you don’t take.”

Reference:
1. Eckhout G, Schubert A. Where have all the anesthesiologists gone? Analysis of the national anesthesia worker shortage. ASA Newsl. 2001; 65(4):16-19.



 

 

 

 

Ross J. Musumeci, M.D., is Vice-President, Anesthesia Associates of Massachusetts, P.C., Westwood, Massachusetts.



return to top


 


FEATURES

Bioterrorism: Death in a Droplet

ARTICLES

DEPARTMENTS

The views expressed herein are those of the authors and do not necessarily represent or reflect the views, policies or actions of the American Society of Anesthesiologists.

NL Archives

Information for Authors