5 outcomes of anesthesia practice consolidation

Many of these practices are acquired by practice management companies, which healthcare administrators perceive help improve care standards and efficiency, according to the “Acquisitions in Anesthesia” report from abeo.

However, the report suggested acquisitions in anesthesia often result in the following unanticipated outcomes.

Acquisitions and consolidation often result in a 20 to 40 percent increase in managed care rates as a result of increased leverage with managed care payers and increased top-line revenue, according to abeo.
As PMCs oversee anesthesia groups, it lessens the hospital’s control of the perioperative environment and can complicate direct communication with physicians in the group.
Physician recruitment and retainment can become more difficult following an acquisition, as terms of the contracts often make positions within the group less attractive. Common terms include a 20 to 25 percent decrease in physician compensation following the acquisition and non-competes that prohibit physicians from practicing in the same location if the PMC terminates its contract with the hospital, according to the report.
Physician behavior and attitude in the OR sometimes changes as a result of their allegiance to the PMC, according to the report.
PMCs sometimes refuse to adjust Fair Market Value arrangements, which are often in place between an anesthesia group and a hospital, after acquisitions despite significant growth in top-line revenue, according to the report.