In our first article we focused on the basics of anesthesia practice management companies. In this article we’re going to evaluate the specific topic of private equity groups and anesthesia. We will discuss the basics of private equity and their desire to purchase Anesthesia groups. Finally, we will discuss the steps you should take to either pursue a sale of your group or avoid one.
A quick look at the MGMA data over the past 10 years reveals a staggering trend. Independent private anesthesia groups are quickly being replaced by Anesthesia Management Corporations and Hospital Employed models. What is fueling the rapid change are decreasing hospital profits, decreasing insurance reimbursements, hospital consolidation, and the millions of dollars private equity firms are pouring into purchasing anesthesia groups. Partnership tracks are becoming increasingly tenuous as the survival of the old anesthesia models wane. Your group does not have to succumb to this trend. You have all the control in your hands to save your contract, and I want to show you how.
Anesthesiologists have a lot of questions regarding Anesthesia Practice Management Companies (PMC’s). Once a small portion of practice, these corporations represent a rapidly growing percentage of anesthesia care in the United States. It is estimated that several hundred million dollars will be spent this year to acquire anesthesia groups and gain market share. There is an incredible amount of money flowing from capital markets and private equity into Anesthesia. From a purely economic perspective, will this lead to the commoditization of Anesthesia Care and/or an improvement in the quality and availability of care? This article (first of a series) will focus on the market forces leading to the growth of Anesthesia PMC’s.
A Managers Guide to Quality Improvement and Cost Control
The current environment of value based health care has many administrators scratching their heads about perioperative services. The environment is becoming more chaotic as different medical associations and private/governmental healthcare organizations weigh in with best practice guidelines. Trying to weigh the confusing amounts of information can be daunting. You still have one set of providers who have the skills to evaluate the entire range of perioperative services: Anesthesiologists.