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December 2007
Volume 71
Number 12

The Fallacy of the Field of Dreams Business Plan: A Downward Trend in Anesthesiology Productivity

Amr Abouleish, M.D., M.B.A., Chair
Committee on Practice Management

Todd B. Evenson, M.B.A.


“If you build it, he will come.”

From “Field of Dreams,” 1989.

n speaking with many different providers and groups, there is an impression in the clinical community that anesthesia practices are being asked to cover more sites — either in existing facilities or in new facilities — without equivalent increases in cases or billed units. The result is that clinical productivity, as measured as work done by each anesthetizing site or by each individual anesthesiologist, has subsequently decreased over the last several years. But is this really the case?

‘The Cost Survey for Anesthesia and Pain Management Practices 2007 Report Based on 2006 Data’ (Item # 6732) is available now!

ASA members can view the report from the ASA Web site using the link www5.mgma.com/ecom/Default.aspx?action=INVProduct
Details&args=2672&tabid=138
. To order the report, please call (877) 275-6462. To receive your discounted affiliate pricing, tell the customer service representative that you are an ASA member.

Each year for this report, MGMA surveys the MGMA and ASA memberships to obtain the most recent anesthesiology and pain management group revenue, staffing and operating cost data. In this year’s report, the MGMA ‘Cost Survey for Anesthesia and Pain Management Practices 2007 Report Based on 2006 Data,’ one will find complete data on staffing ratios, medical revenue, staff costs, total operating costs, revenue after operating costs, provider cost and net practice income or loss. Accounts receivable, payer mix, collection percentages, financial ratios and balance sheet information are also included as well as information on anesthetizing location, treatment location, revenue per unit, physician time units and anesthesia case data such as number of cases, revenue and charges. Segments include “per physician,” “per case,” “as a percent of total medical revenue” and “per anesthetizing location.” Further, new to this year’s report, the results are also reported separately for “anesthesiology with pain management” and “pain management” only.

In 2005, Medical Group Management Association (MGMA), in conjunction with ASA, developed a survey that was designed specifically to address the needs of anesthesia and pain management practices. The most recent document, the “Cost Survey for Anesthesia and Pain Management Practices 2007 Report Based on 2006 Data,” includes data from more than 160 anesthesiology and pain management groups. It has a tremendous amount of staffing, revenue and cost data. The report contains several categories, including by group size and staffing model: “physician-only,” “greater than one CRNA/AA per physician” (mostly or all anesthesia care team) or “less than one” (mix of physician only and anesthesia care team). For more information and how to order, please see the box to the right.

The report illustrates clinical productivity in several ways. Cases, total ASA units billed and time units billed are normalized per anesthetizing location as well as per full-time equivalent (FTE) physician. Although “per FTE physician” measurements may be confounded when comparing productivity between groups with different staffing models1,2, break-out data by staffing model categories reduce these problems.

The exploration of clinical productivity trends as reported in the cost report highlights that no matter what measurement is used, clinical productivity decreased. In the “all anesthesia groups” category, the median total and time units billed per anesthetizing location decreased 12.9 percent and 21 percent, respectively, from 2004 to 2006 [Figure 1]. Similarly, units billed per FTE physician diminished in all three staffing categories, with Figure 2 illustrating the medical care team staffing groups. Most notably, the median number of anesthetizing sites rose by 15 percent, and the median encounters per site fell by 10 percent [Figure 3].

 

 


Although the survey results cannot empirically state that increases in the number of anesthetizing locations are the sole cause, the results support the hypothesis that provider workload has not increased at the same rate as the number of sites that groups must cover. To survive economically, groups are forced to negotiate compensation from the facility for staffing the additional sites.

Finally, clinical productivity is only one aspect of the cost report. We encourage more groups to participate in the next anesthesia group survey (sent out in spring 2009) to continue to provide the anesthesiology community with accurate and valuable economic data and benchmarks. Additionally, if you complete a survey, you get a free copy of the report!

The 2008 ASA Conference on Practice Management will be held January 25-28, 2008 in Tampa, Florida. The conference will cover topics on the pros and cons of hospital employment, quality initiative, Medicare policies, negotiating with hospitals and anesthesia workforce. More information and registration materials can be found on the ASA Web site under the “Practice Management” link www.ASAhq.org/Washington/pmhomepage.htm.

References:
1. Abouleish AE, Prough DS, Barker SJ, et al. Organizational factors affect comparisons of clinical productivity of academic anesthesiology departments. Anesth Analg. 2003; 96:802-812.
2. Abouleish AE, Prough DS, Whitten CW, et al. Comparing clinical productivity of anesthesiology groups. Anesthesiology. 2002; 97:608-616



    Amr Abouleish, M.D., M.B.A., is Professor, Department of Anesthesiology, University of Texas Medical Branch, Galveston, Texas.

    Todd B. Evenson, M.B.A., is survey analyst, Medical Group Management Association (MGMA) national office and lead analyst, Cost Survey of Anesthesia and Pain Products.

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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.

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