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ASA NEWSLETTER
 
 
March 2003
Volume 67
Number 3

Medicare and the Anesthesia Shortage, Part 3: Making a Stand

Ross J. Musumeci, M.D.


Parts 1 and 2 of Dr. Musumeci’s comments on Medicare and the anesthesia shortage appear in the March 2002 and May 2002 NEWSLETTERS.

Many of my colleagues enjoyed Michael Scott’s “Washington Report” article titled “Professional Association Boycotts: Primer for a Frustrated Member” in the December 2002 issue of the ASA NEWSLETTER. A change of 60 cents per unit one way or another is indeed irrelevant when Medicare underpays us by about $30 per unit. Both Mr. Scott and the disgruntled member made good points. Mr. Scott’s perspective on the limitations of what ASA can do regarding changing the Medicare fee schedule becomes obvious if we think about it carefully. We must accept the fact that ASA cannot fight this battle for us alone. It is probably also true that ASA could be more aggressive in its pursuit of a solution without running afoul of antitrust laws.

Physicians of many specialties have started to refuse to accept Medicare patients.1,2 In a survey published by the American Medical Association (AMA) in September 2002, 24 percent of physicians sampled said they had either limited the number of Medicare patients they treat or planned to limit the number within six months because of reduced reimbursement, and 17 percent said they currently were not accepting new Medicare patients. Of the 83 percent that were still accepting Medicare patients, about a third were contractually obligated to do so by a hospital or other organization. A full 42 percent of respondents said they would no longer participate in Medicare if physician rates were lowered by 5 percent to 6 percent in 2003.

Despite this national trend, most anesthesiologists have not begun to refuse Medicare patients for several reasons. Most hospital contracts require anesthesiology groups to accept Medicare, and failure to do so can put practices in jeopardy of losing contracts. In addition, the public image that would be created by doctors refusing care to the elderly is problematic. Last but not least, most anesthesiologists find it objectionable to refuse care to Medicare patients. Clearly, the alternatives to accepting Medicare are distasteful, but an examination of our current state of affairs suggests that accepting the status quo is also fairly distasteful.

On average, every anesthesiologist in the United States pays approximately $80,000 out of pocket per year to make up the difference for Medicare rate inequities.3 This means that by refusing to bring Medicare reimbursements more in line with commercial rates, the federal government is effectively levying an annual tax of $80,000 on each of us that is above and beyond the 35 percent to 39 percent that it already takes. To make matters worse, Medicare pays us 39 percent of commercial rates while it pays other specialties an average of 76 percent of their respective commercial rates.4 So our “tax” is considerably higher than any other medical profession.

Federal legislators are certainly aware of the situation. I know that many anesthesiologists from my area have shared this information in detail with our federal legislators, and others, including ASA representatives, have made similar appeals to federal legislators on many occasions. We clearly have no means of effective recourse since multiple visits to Washington, D.C., and multiple appeals for assistance to the AMA/Specialty Society Relative Value Update Committee and the Centers for Medicare & Medicaid Services (CMS) have resulted in another reimbursement cut for 2003.

Given all of this information, it is hard to avoid the conclusion that the federal government is fully aware of the fact that it is levying a huge tax upon us to subsidize care for the elderly and that they are doing so because it believes that our commitment to our patients and our contractual obligations to our hospitals prevent us from doing anything about it. The government appears to be taking egregious and blatant advantage of the very commitment to our patients that make us good physicians because it is politically expedient for it to do so. It is hard to imagine a more offensive or demoralizing situation.

It is easy to conclude that while refusing Medicare patients is distasteful for most of us, the current situation is even more distasteful and offensive. It also is easy to conclude that we will continue to suffer gross unfairness at the hands of the federal government until we decide to stop enabling it. Federal legislators have benefited over the last 10 years by not having to allocate funds for anesthesia care because we have let them take advantage of us. Until anesthesiologists take action that will finally make legislators uncomfortable, they have no real reason to change.

The fact is that legislators will react if we refuse to accept Medicare, and anesthesiologists must thoroughly consider that option. Not accepting Medicare patients presents considerable challenges for those in our specialty, but these challenges are less problematic in the face of a nationwide shortage of personnel since we are harder to replace than we otherwise would be. Furthermore, we should not let responsibility for such an action fall on our community but rather point out that the federal government is to blame for refusing to pay reasonable rates. Each anesthesiologists must decide whether he or she is individually prepared to take that stand.

Legislators will react to a meaningful court challenge to the current reimbursement scheme as well, and ASA should be encouraged to lead such an effort. For example, an argument might be made that anesthesiologists are being denied equal protection of the laws in violation of the 14th Amendment (due process and equal protection). ASA has made an effective case to CMS that unequal treatment relative to other specialties clearly exists, but ASA has been ineffective in correcting this inequity in the Medicare reimbursement schedule.5 Perhaps it is time to take the next step and initiate legal action.

Another possibility lies in the premise behind Garelick v. Sullivan,6 in which the Second Circuit Court of Appeals ruled against anesthesiologists in their argument that the federal government was engaging in a “taking.” The court ruled against the anesthesiologists because anesthesiologists were not legally compelled to either work in a hospital or to provide care to the elderly; the compulsion, the court said, was only moral, ethical and financial. Thus, the court seemed to leave refusing care to the elderly as the only viable solution, thereby inviting, if not encouraging, a boycott of Medicare. If we consider the hypothetical situation in which a large practice (or several small ones) actually takes the step of refusing to care for Medicare patients, it appears unlikely that local government officials could allow that to happen. If such a situation were to arise, it seems certain that state attorneys general would be forced to legally compel anesthesiologists to provide service in order to protect the health and welfare of elderly citizens. What would happen to the ruling in Garelick v. Sullivan once a legal compulsion to provide care existed?

Whether either of these examples represents grounds for a viable legal challenge to Medicare reimbursement is unclear. If we have any hope of changing the current situation, however, individual anesthesiologists must be willing to take actions that they would normally eschew, and ASA must be willing to think more creatively and aggressively about challenging the federal government. The barriers to action of this kind are admittedly large, but each cut in the Medicare rate creates another group of anesthesiologists who feel just like the one quoted in Mike Scott’s article. The question is, how much worse will we have to be treated before each of us is willing to make a stand?

References:
1. PR Newswire. AMA survey shows Medicare payment cuts hurt access to care for America’s Seniors. September 3, 2002.
2. Medicare Physician Payment Cut Survey. Research Brief. July 2002. <www.ama-assn.org/ama1/pub/upload/mm/41/julymedpay.pdf>.
3. Musumeci RJ. Medicare and the anesthesia shortage, part 2: You are doing more than your fair share. ASA Newsl. 2002; 66(5):21,25.
4. Hannenberg AA. Contracting challenges in anesthesiology. Medical Group Management Update. 2001; 40(10):7
.5. Five-Year Review of Physician Work Values. American Society of Anesthesiologists presentation to American Medical Association/Specialty Society Relative Value Update Committee. August 2002.
6. Garelick v. Sullivan, 987 F. 2nd 913 (2nd Cir. 1993).

Editor’s Note: With the current workforce crisis in both anesthesiology and nurse anesthesia, Medicare- and Medicaid-dependent hospitals are in the greatest jeopardy. As anesthesia providers leave those facilities to seek more fertile practices, these often-urban, often-inner-city hospitals will be unable to provide adequate surgical/trauma care. It seems that this traditional capitalistic principle of workforce supply and demand may be more effective and less risky for anesthesiologists. Why boycott when the inner-city physician exodus will drive our point home with legislators?

In any event, readers are reminded that the decision to publish Dr. Musumeci’s lengthy piece as a guest article, rather than a letter to the editor, should not be interpreted as an endorsement by ASA of the views or proposals expressed therein.

— M.J.L.



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