Consolidation is on the rise across healthcare, including the anesthesia space. Here are three notes on where efforts to consolidate the anesthesia industry are headed, as recently reported by Becker’s:
1. At least four anesthesia groups have emerged as power players within the industry, including US Anesthesia Partners, Premier Anesthesia, North American Partners in Anesthesia and NorthStar Anesthesia. All four groups work with hundreds of partner facilities and have inked major hospital and health system partnerships in the last year alone.
2. In May, the Federal Trade Commission resolved an antitrust case against Welsh Carson, Anderson & Stowe which was tied up in a lawsuit alongside its portfolio company, U.S. Anesthesia Partners. In January, the FTC reached a settlement with Welsh Carson, requiring the company to limit its involvement with USAP and notify the commission of specified future acquisitions and investments in anesthesia and other hospital-based physician practices. The FTC has finalized that consent order, according to a May 20 news release. The FTC’s case against USAP continues to proceed in federal court.
3. The ongoing anesthesia shortage, paired with increased demand for anesthesia, also plays a role in the ongoing consolidation of anesthesia groups — particularly in rural settings.
“Rural hospitals often depend on just one or two anesthesia providers to keep their surgical services operational. If those providers cut hours or leave, it can result in temporary or permanent loss of surgical capabilities, forcing patients to travel long distances for care or forgo needed procedures altogether. These closures also put the entire hospital’s financial sustainability at risk, contributing to rural hospital closures and health system consolidation,” Allyn Miller, CRNA and regional director of anesthesia operations of Franklin, Tenn.-based Community Health Systems told Becker’s.
“To adapt, many health systems make strategic decisions about which surgical and procedural services to maintain, often driven by financial margins and anesthesia availability,” she added. “Low-volume or low-margin services are increasingly being reduced or eliminated, and facilities without consistent anesthesia coverage may close.”
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