Why US hospitals are breaking up with anesthesiology groups

More hospitals are severing ties to anesthesiology groups, some to build their own internal anesthesia departments, others inking new contracts with different provider groups and some joining the growing volume of echoes claiming certain anesthesiology groups have “anticompetitive business practices.”

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So far in 2024, there have been eight major shifts in business practices with U.S. major health systems and their breakups with anesthesiology groups.

In early February, Memphis, Tenn.-based Methodist Le Bonheur Healthcare ended a 50-year partnership with Medical Anesthesia Group and is now partnering with Somnia Anesthesia. The contract’s end came one year after several providers left the anesthesia group, acknowledging to Methodist Le Bonheur previously that it could not provide full coverage for the system due to the turnover it was experiencing. 

Five hospitals across Colorado, including St. Anthony Hospital in Lakewood, St. Anthony North Hospital in Westminster, OrthoColorado Hospital in Lakewood, Longmont United Hospital, and Mercy Hospital in Durango, are set to terminate their contracts with U.S. Anesthesia Partners. This comes after Colorado Attorney General Phil Weiser reached a settlement with the group to allow some hospitals out of their contracts. U.S. Anesthesia Partners has been accused by the FTC of having anticompetitive business practices that drive up prices. However, the group argues the FTC’s claims are “misguided.” 

On Feb. 9, a contract between Billings (Mont.) Clinic and Billings Anesthesiology ended, and the clinic did not renew, stating it would seek to build its own fully staffed, in-house anesthesiology department with 30 to 40 employees.

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