Latest / Becker’s Healthcare Podcast / How Healthcare Organizations Are Navigating Growing Anesthesia Staffing, Cost, and Coverage Pressures
Transcript
- 0:00- Hello, everyone. This is Erica Spicer Mason with
- 0:02- Becker's Healthcare. Thank you so much for tuning
- 0:05- in to the Becker's Healthcare podcast series.
- 0:08- Today, we're going to talk about how healthcare
- 0:10- organizations
- 0:11- are navigating growing anesthesia
- 0:13- staffing, cost, and coverage pressures
- 0:15- and what it takes to build a more
- 0:17- sustainable and flexible model for the future.
- 0:20- So joining me for this conversation, we have
- 0:22- two leaders from MedHQ,
- 0:24- Steve Mason, the president,
- 0:25- and Zachary Phillips, vice president of advisory services.
- 0:30- Zach, Steve, great to have you with us
- 0:31- today. Thanks so much for being here. Pleasure
- 0:34- to be here. Thank you. Thank you for
- 0:35- having us.
- 0:37- Well, it's great to have you both on
- 0:38- the line. Before we get into the discussion,
- 0:40- wondering if you could just tell us a
- 0:42- little bit about yourself and your work in
- 0:44- the health care space. Steve, you wanna get
- 0:46- us started?
- 0:47- Yes. Happy to do that. Thank you. I
- 0:50- am president
- 0:51- of MedHQ.
- 0:53- My background,
- 0:54- is over thirty years in the health care
- 0:56- space.
- 0:57- I've been,
- 0:59- both in management
- 1:00- positions and leadership positions within the hospital system.
- 1:04- I've also led a multistate
- 1:07- MSO for a large specialty practice group.
- 1:11- I've served in a leadership position for a
- 1:14- firm that provides audit services to large physician
- 1:17- practices and health care systems.
- 1:20- And prior to joining MedHQ, most recently, I
- 1:22- served as the chief operating officer for a
- 1:24- national physician company.
- 1:26- And, now I serve as the president for
- 1:28- MedHQ.
- 1:30- Fantastic. Thank you, Steve. And Zach, tell us
- 1:33- about you.
- 1:35- I serve as the vice president of advisory
- 1:37- services at MedHQ,
- 1:39- and my background
- 1:40- includes about a decade of experience in anesthesia
- 1:43- practice management
- 1:45- where I oversaw national multi site operations,
- 1:49- led financial performance improvement,
- 1:51- and drove administrative function for cross functional teams.
- 1:54- So really glad to be with you today
- 1:56- and looking forward to the conversation.
- 1:59- Thanks so much, Zach. And and, again, it's
- 2:02- great to have you both with us, especially
- 2:04- to walk through some of the growing pressures
- 2:06- that I know we're seeing in the anesthesia
- 2:09- space.
- 2:10- For a lot of organizations right now, they're
- 2:12- feeling pressure from the staffing side of things,
- 2:15- costs, and then coverage as well.
- 2:18- So I'm curious if you can set the
- 2:20- scene for us just in a little bit
- 2:22- more detail.
- 2:23- What are you hearing from anesthesia groups and
- 2:25- their facility partners about what's making this moment
- 2:28- particularly difficult?
- 2:30- I... I'll tackle that one. I think what
- 2:33- we're seeing in the anesthesia space in general
- 2:35- is a convergence
- 2:36- of multiple challenges
- 2:38- that have frankly been building for a number
- 2:41- of years.
- 2:42- Anesthesia
- 2:42- really is a people intensive business,
- 2:45- with
- 2:46- the provider side.
- 2:48- And there's been workforce shortages
- 2:51- for a number of years
- 2:53- contributing to increased labor costs.
- 2:55- In addition to that, reimbursement
- 2:57- pressure,
- 2:58- on the side of the insurance payer, side
- 3:01- of the equation
- 3:02- and, frankly, a growing demand for the services.
- 3:04- So it's a convergence of all those things
- 3:06- with... Without enough providers, increased labor costs, decreased
- 3:10- reimbursement,
- 3:11- and a greater demand for more and more
- 3:14- services.
- 3:15- It creates a pretty challenging operating environment.
- 3:19- Hospitals and and ambulatory surgery centers really, at
- 3:23- their core, they need predictable,
- 3:24- dependable anesthesia coverage,
- 3:27- simply because their, their surgical operation depends on
- 3:30- it. And if the anesthesia coverage isn't there,
- 3:34- patients can be impacted, cases can be delayed,
- 3:36- schedules get disrupted, and and ultimately,
- 3:40- the the
- 3:41- the patient experience,
- 3:42- can suffer from that.
- 3:45- Yeah. Yeah. Absolutely.
- 3:47- I appreciate
- 3:48- how you outline that, Steve. Zach, what would
- 3:50- you add here?
- 3:51- Yeah. I would add just maybe a little
- 3:53- more detail. So in particular on the staffing
- 3:56- side, what we're seeing as an organization
- 3:58- is,
- 3:59- you know, facilities and groups across the country
- 4:02- work hard to recruit and retain clinicians
- 4:06- while trying to maintain a reliable level...
- 4:09- A reliable coverage level
- 4:11- across multiple facilities. So
- 4:13- at at the core, it's not just about
- 4:15- a shortage of providers, but it's about having
- 4:18- the right model, the right mix of providers,
- 4:21- and the ability to flex
- 4:23- with needs as facilities change.
- 4:25- On the financial side, as Steve alluded to,
- 4:28- you know, reimbursement just isn't keeping up with
- 4:31- the cost to deliver care.
- 4:34- And since labor is such a big component
- 4:36- of the overall cost structure, efficiency is critical.
- 4:40- Even small inefficiencies
- 4:42- can have a big impact on profitability.
- 4:45- So to summarize those comments,
- 4:47- really, the challenge that we're seeing is that
- 4:50- the issues across the country are not independent
- 4:52- of one another.
- 4:54- Staffing decisions affect cost.
- 4:57- Cost affects sustainability,
- 4:59- and coverage affects the facility's ability to operate.
- 5:03- So, really, what we do is look at
- 5:05- the entire system
- 5:06- as opposed to trying to solve each problem
- 5:09- individually.
- 5:11- Yeah. And I'm sure when something is a
- 5:14- system level
- 5:15- challenge,
- 5:16- of course, that makes it a little bit
- 5:18- more daunting to take on and to solve.
- 5:20- And so I'm curious,
- 5:22- and, Zach, maybe you have a little more
- 5:24- insight here.
- 5:25- Where does the pressures that we've talked about,
- 5:28- especially pressures on the system in general, where
- 5:30- does it show up first? Is there a
- 5:32- point where a group realizes that its current
- 5:34- model isn't going to hold the way that
- 5:36- it is?
- 5:37- That's a great question. And, typically, what we
- 5:40- see is the pressure usually shows up first
- 5:43- in day to day operations.
- 5:45- So that looks like more difficulty filling out
- 5:48- schedules on a day to day basis.
- 5:51- We see an increased reliance on premium clinical
- 5:54- labor.
- 5:55- We see last minute changes, and maybe the
- 5:58- one that we see most often is
- 6:02- the leadership team, particularly clinical leadership,
- 6:05- spends more time putting out fires on the
- 6:07- administrative side of things.
- 6:09- So on the financial piece, you know, we
- 6:11- look at
- 6:13- increased labor at a rate that that revenue
- 6:16- just can't keep up with and relationships
- 6:19- that used to
- 6:20- be steady
- 6:21- now have become,
- 6:22- you know, unsustainable.
- 6:24- So that point of realization,
- 6:25- just to circle back to your original question,
- 6:27- is
- 6:28- the current model appears
- 6:30- that it won't be sustainable
- 6:33- when those one offs become a pattern. Those
- 6:35- individual issues
- 6:37- become the norm as opposed to the exception.
- 6:41- Mhmm.
- 6:42- Yeah. It's a very clear kind of symptom
- 6:45- list, that you shared back, so I appreciate
- 6:47- you,
- 6:48- providing more detail on that.
- 6:51- So coming back to you both on this
- 6:52- one,
- 6:53- when a client comes to you knowing that
- 6:55- something isn't working, you know, they're seeing some
- 6:57- of these symptoms arise, whether that's,
- 7:00- difficulty filling appointments,
- 7:02- clinical leadership spending an inordinate amount of time
- 7:05- on the administrative fires,
- 7:07- you know, and and they're not sure where
- 7:09- or how to start addressing those problems. How
- 7:12- do you lead them through that? And in
- 7:14- that assessment, is there anything that surfaces that
- 7:16- tends to surprise them?
- 7:18- Yeah. I'll I'll take a crack at that
- 7:20- one and then would welcome comments from Steve
- 7:23- as well. The the first thing that we
- 7:25- do, just the complexity of the issues that
- 7:28- I described
- 7:29- previously,
- 7:30- you know, we really take the opportunity to
- 7:32- slow things down,
- 7:34- really understand
- 7:35- what's going on.
- 7:37- We oftentimes
- 7:38- have a client that comes to us and
- 7:40- says,
- 7:41- we think we have a staffing problem, or
- 7:44- we think we have a financial problem, or
- 7:47- maybe we have a relational problem.
- 7:50- But, really, when we take the time to
- 7:52- dive into that, those are just symptoms of
- 7:54- a bigger problem. So we start by looking
- 7:57- at the business holistically.
- 8:00- What that means is we understand
- 8:02- financial performance and staffing and scheduling practices,
- 8:06- operational workflows,
- 8:08- all the details that go into
- 8:11- a practice,
- 8:12- a group, a facility relationship, and the data
- 8:15- behind that. But we don't just want to
- 8:17- understand the numbers.
- 8:19- We want to understand why the numbers are
- 8:21- telling us what they're telling us. So, for
- 8:24- example,
- 8:25- if labor costs are increasing,
- 8:27- is that because there's genuinely a shortage of
- 8:30- providers?
- 8:31- Could it be the way that schedules are
- 8:33- being built, or are there inefficiency
- 8:35- in how providers are deployed?
- 8:38- Those are very different problems, and they require
- 8:41- very different solutions.
- 8:43- So after that point, we
- 8:45- prioritize what items can we tackle in the
- 8:49- short term,
- 8:50- what can be improved over the medium term,
- 8:52- and then what are the items that need
- 8:54- a bigger picture, you know, long term
- 8:57- attention. So it... One thing that I would
- 8:59- note is, you know, it's important to us
- 9:01- and, you know, our approach as we work
- 9:03- with facilities and groups across the country is
- 9:07- we take into account what's important to the
- 9:09- leadership teams that are in place
- 9:11- to make sure that we're aligned on what
- 9:13- success looks like. You know, we don't come
- 9:15- in with a predetermined answer.
- 9:17- Instead, we wanna understand what's important to the
- 9:20- client, what's working, and then identify some opportunities
- 9:24- to build a more sustainable path forward.
- 9:27- Yeah. And if I could just build on
- 9:28- what Zach just outlined, I I think, you
- 9:31- know, in terms of surprises, what we often
- 9:33- hear from our clients is
- 9:35- how interconnected
- 9:37- all of those,
- 9:38- different elements are that Zach just referenced.
- 9:41- Frequently, we'll hear comments like, we know we
- 9:44- have a shortage of providers,
- 9:46- but as we look at the data and
- 9:48- start diving in deeper,
- 9:50- we frequently find that while there may be
- 9:53- a provider shortage, there also could be challenges
- 9:56- related to how the schedules are set up,
- 9:58- what utilization
- 10:00- rate is,
- 10:01- how the different coverage needs are structured across
- 10:04- different locations.
- 10:06- You know, another example would be a client
- 10:08- may believe that, that it's strictly a reimbursement
- 10:12- issue,
- 10:13- that's making the anesthesia provision kind of untenable,
- 10:17- but there's opportunities to improve expense management or
- 10:21- operational
- 10:22- visibility or or alignment of contracts that really
- 10:25- can address that issue.
- 10:27- And it's not simply the reimbursement side of
- 10:30- things. Ultimately, it's it's not always the initial
- 10:34- problem that a client may think that they
- 10:37- have, but it's really digging a little deeper
- 10:39- and and it's multifactorial.
- 10:41- And so
- 10:42- as Zach said, you know, we really try
- 10:43- to dive in and and really make sure
- 10:45- that we're covering all the fronts. And chances
- 10:48- are there's gonna be more than more than
- 10:50- one factor, and and we can make progress
- 10:52- on all of those. If there was an
- 10:53- easy solution, they probably would have found it.
- 10:55- It's truth is there's there's a lot of,
- 10:59- nuance
- 11:00- when the problems that exist in in anesthesia
- 11:02- coverage today are considered.
- 11:04- I think the biggest opportunity isn't necessarily doing
- 11:08- more.
- 11:09- It's giving our clients and and the folks
- 11:11- that we're privileged to work with the right
- 11:13- tools and resources and and and truthfully, just
- 11:17- having better visibility
- 11:18- into the factors,
- 11:20- that are contributing to to an anesthesia problem,
- 11:24- so that they can make better decisions with
- 11:26- what what what they already have.
- 11:29- Mhmm.
- 11:30- Yeah. Steve, I appreciate your your build on
- 11:32- there. And it reminds me of something that
- 11:35- Zach had mentioned earlier, which was that when
- 11:38- you're working with
- 11:39- your clients,
- 11:40- there's not necessarily a single predetermined template or
- 11:44- plan that you're handing them. It's more of
- 11:46- customized support given the nuances that you just
- 11:49- touched on, Steve.
- 11:51- So can you give us a sense of
- 11:52- what that looks like in practice? And is
- 11:55- there a partner who comes to mind who's
- 11:57- really getting this process right and these improvements
- 12:00- are happening?
- 12:01- The customizable support to us means we recognize
- 12:05- that every anesthesia relationship and organization
- 12:09- is different.
- 12:10- You may have a a clinically strong group
- 12:12- with great leadership, but
- 12:15- need some help on payer contracting and financial
- 12:18- reporting.
- 12:20- Another group may have a great administrative infrastructure
- 12:23- but need support with recruiting or workforce planning
- 12:27- or operational performance.
- 12:29- Then there are other groups that need help
- 12:32- in a variety of those areas, and a
- 12:34- more comprehensive solution is is required. So
- 12:38- the summary comment is we don't believe that
- 12:41- every organization needs the same level
- 12:44- or type of support.
- 12:46- So what that looks like is we start
- 12:48- by understanding the existing capabilities
- 12:51- where the existing leadership team wants to take
- 12:54- the organization
- 12:56- and then identify what resources are needed to
- 12:58- get there.
- 12:59- At that point, we can help build a
- 13:02- customized support structure
- 13:04- to reach that goal, which might include some
- 13:06- of the things that I referenced, financial planning
- 13:09- analysis, payer contracting, recruitment,
- 13:11- operational leadership, HR, or strategic planning. The key
- 13:15- for us is we're not trying to replace
- 13:18- what already works.
- 13:19- Our goal is to strengthen it.
- 13:22- In my opinion,
- 13:23- the best partnerships are the ones where there's
- 13:26- a clear understanding of roles and responsibilities,
- 13:30- strong communication,
- 13:31- and a willingness to continuously
- 13:33- evaluate what's working and what isn't.
- 13:36- And to elaborate on that, I I just
- 13:38- would double down and highlight the characteristics of
- 13:41- of partnerships that really work well
- 13:44- and the strongest partnerships. Really, they tend to
- 13:47- have engaged clinical leadership with with really transparent
- 13:51- communications
- 13:52- to make sure that,
- 13:53- that the objectives are clearly outlined, that there's
- 13:56- a shared understanding of of both the clinical
- 13:59- objectives and the business objectives.
- 14:01- And recognizing that,
- 14:03- the way that anesthesia provision has been looked
- 14:06- at historically,
- 14:08- should evolve. It should evolve to meet the
- 14:10- needs, of the patient and and where care
- 14:13- is being provided and what type of care
- 14:15- is being provided and and what what has
- 14:18- historically worked is is likely not going to
- 14:20- work in the future if you don't flex
- 14:22- with that. So,
- 14:24- there's definitely a need to look ahead and
- 14:26- and to plan for that and to stay
- 14:27- out in front of it as much as
- 14:29- possible.
- 14:30- I would also point to partnerships that are
- 14:32- successful or ones where there's real transparency of
- 14:35- data, and the data will tell a story.
- 14:37- And we just wanna make sure that everybody's
- 14:39- looking at it the same way and and
- 14:41- that there's collaboration
- 14:42- to make adjustments
- 14:43- based on what the data's sharing.
- 14:45- And, really, while it's sometimes is an overused
- 14:49- phrase, alignment is is really important,
- 14:52- because when the anesthesia group and the facility
- 14:54- understand each other's priorities
- 14:56- and can work towards that common goal, that's
- 14:58- where you have really strong foundation for not
- 15:01- just success today, but long term success and
- 15:05- and good partnering.
- 15:07- Mhmm.
- 15:08- Now, Steve, and and you're touching on what
- 15:10- I was hoping to close this out on
- 15:12- as well, which is, you know, you mentioned
- 15:15- that the field and the challenges are are...
- 15:18- They're evolving. And so
- 15:20- I'm curious as organizations
- 15:22- are looking out a few years from now,
- 15:25- how do you see anesthesia staffing and coverage
- 15:28- models
- 15:29- changing, especially as more cases move to the
- 15:32- ambulatory setting? Are there specific things that groups
- 15:35- should be thinking about now? I I know
- 15:37- you mentioned data, but we'd love to hear
- 15:39- any other, best practices or strategies for the
- 15:42- years ahead.
- 15:43- Yeah. Absolutely. And I I think you hit
- 15:45- the nail on the head is is evolution,
- 15:48- how anesthesia is provided needs to continually evolve,
- 15:51- and and you gave a great example as
- 15:53- more procedures move into ambulatory settings. It's not
- 15:56- just any procedure, but it's more complex procedures.
- 16:00- Organizations and practices are going to need to
- 16:03- have greater flexibility in how they deploy their
- 16:05- providers,
- 16:06- to meet those needs.
- 16:08- A hospital based program can be very, very
- 16:10- different from an ambulatory
- 16:12- surgery center program.
- 16:14- And even within that environment, there's... You know,
- 16:17- we're already seeing significant variation in in case
- 16:20- mix and volume in, you know, historically hours
- 16:24- of operation and and how it's staffed. So
- 16:27- I I think groups will,
- 16:29- need to continue
- 16:31- to move away from a kind of a
- 16:33- one size fits all approach and really be
- 16:35- more deliberate with site specific coverage models,
- 16:38- providers that understand that,
- 16:41- and what that means to the group both
- 16:43- clinically, operationally, financially.
- 16:46- All of those things,
- 16:48- need to be considered as as the model
- 16:50- changes and evolves.
- 16:51- We touched on data.
- 16:53- Hand in hand with data would be technology.
- 16:56- They're gonna continue to play a really important
- 16:58- role. We need to be able to look
- 16:59- at what the plan is and how we
- 17:01- execute it against the plan from a from
- 17:03- a coverage model and availability model, a financial
- 17:06- model.
- 17:07- Organizations really need visibility
- 17:10- into how providers are being utilized, not just
- 17:13- how they're being scheduled, but how they're being
- 17:15- utilized,
- 17:16- because I think at its core,
- 17:18- there's a lot of alignment that already exists
- 17:20- between, say, a facility, whether it's a hospital
- 17:22- or an ASC in an anesthesia practice.
- 17:26- Efficiency is is already there. The the desire
- 17:29- for efficiency is already there.
- 17:31- So you need to have the data that
- 17:33- informs that so that,
- 17:35- misses or or variation from an efficient model
- 17:38- can be
- 17:39- addressed and quantified and move towards better performance.
- 17:43- By bringing all those pieces together, the leaders
- 17:45- both on the clinical side and on the
- 17:47- on the hospital or ASC or business side,
- 17:50- if you will, will make more informed decisions
- 17:52- when they have the the right data. We'll
- 17:54- tell them where where they need resources and
- 17:57- how to structure their operations.
- 17:59- Just to add on to Steve's comments, I
- 18:01- I wanna dig into the the role of
- 18:03- the administrative
- 18:04- teams just a little bit. We think that
- 18:07- that infrastructure is gonna be paramount in the
- 18:10- path forward for facilities and groups alike as
- 18:13- the relationships become
- 18:15- more dynamic and the needs change in light
- 18:18- of the workforce shortage and the reimbursement pressures
- 18:21- that we've talked about.
- 18:22- Those capabilities
- 18:24- to manage the complexity
- 18:25- and do so without creating additional burden for
- 18:28- clinicians is really gonna be important here. So
- 18:31- our advice to groups
- 18:32- is to start thinking about scalability now rather
- 18:36- than waiting until growth or staffing challenges
- 18:39- force that change.
- 18:40- So some questions for facilities and groups alike
- 18:43- would be,
- 18:44- is the right leadership structure in place?
- 18:47- Do we have reliable
- 18:48- data?
- 18:49- Are our contracts aligned with the services that
- 18:52- are being provided?
- 18:54- Do we understand the economics, and do we
- 18:56- have flexibility to adapt as the market changes?
- 18:59- Those are the kinds of questions that can
- 19:01- help organizations
- 19:03- build a more sustainable model for the future.
- 19:06- Absolutely.
- 19:07- Well, it's been such a great conversation with
- 19:10- you both. I wanna thank you again for
- 19:12- for sharing with our listeners how they can
- 19:14- better prepare their anesthesia staff and and teams
- 19:17- and operational approach. Before we end our time
- 19:21- together, any final thoughts or maybe anything we
- 19:23- didn't touch on that you wanted to leave
- 19:24- our listeners with?
- 19:26- Yeah. I think,
- 19:27- the biggest,
- 19:29- final thought or message I'd leave for listeners
- 19:32- with anesthesia is is simply understanding it's a
- 19:35- very complex and nuanced business, and there's no
- 19:37- really one single solution that's going to work
- 19:40- for every organization.
- 19:42- But I do think that frequently there are
- 19:45- opportunities that... To make improvements,
- 19:47- to strengthen relationships, and to build a more
- 19:50- sustainable business that aren't being tackled.
- 19:53- I think the starting point to to tackling
- 19:55- those issues is really being willing to take
- 19:57- an honest look at at the organization, at
- 19:59- the situation, and understand what's working and what
- 20:02- isn't,
- 20:03- and being open to changing the things that
- 20:05- need to change. And I would encourage all
- 20:07- anesthesia stakeholders
- 20:09- really not to wait until there's a crisis
- 20:11- to have those conversations and to be forward
- 20:13- thinking and planning.
- 20:15- And, Erica, thank you again for
- 20:18- this conversation. We're certainly grateful for for the
- 20:21- time here. And one final thought for the
- 20:23- listeners from my perspective is really as Steve
- 20:26- alluded to, a proactive approach is key here.
- 20:29- So if you're starting to see recurring challenges
- 20:32- on the staffing front or
- 20:34- increased financial pressure
- 20:36- or difficulty maintaining consistent coverage,
- 20:40- those are the kinds of signals that are
- 20:41- worth paying attention to. And the earlier that
- 20:44- those signals are identified,
- 20:46- the more options that are typically on the
- 20:49- table to address those issues.
- 20:51- And at the end of the day, it's
- 20:53- about building a model that works for both
- 20:55- clinicians and facilities,
- 20:57- but mainly supports reliable access to quality anesthesia
- 21:00- care for patients.
- 21:02- That's what creates a foundation for long term
- 21:04- success.
- 21:06- Well, Zach, Steve, it's been great having you
- 21:08- with us today. Thank you so much for
- 21:10- your time and your insights. It's been great
- 21:12- having you on the podcast.
- 21:13- Erica, thank you for the opportunity to to
- 21:15- speak with you on this important topic.
- 21:18- Thank you very much.
- 21:19- And listeners, you can be sure to tune
- 21:21- in to more podcasts from Becker's by visiting
- 21:23- our podcast page at beckershospitalreview.com.