Is Anesthesia Running Out of Gas? – Understanding The Pain Inflicted By The ‘Financialization’ Of Anesthesia

Currently, anesthesia is administered over one hundred million times annually in the U.S. That number has been climbing year-over-year and is expected to continue into the foreseeable future. Our population is aging. Every day, approximately 10,000 baby boomers retire and that population will balloon from 35.1 million in 2000 to over 69 million in 2030. Put simply, the demand for anesthesia services, especially for an aging population with medical needs, has never been higher. In the wake of the COVID-19 pandemic, hospital expenses are rising as health care staff leave medicine and their positions are filled often using costly temporary...

Overbooked and Overwhelmed: The Consequences of Private Equity’s Push for Profit

The involvement of private equity firms in healthcare has introduced various strategies to increase efficiency and profitability. One such method is overbooking surgical cases in anesthesia departments. Private equity firms, in their pursuit of maximizing returns, may advocate for overbooking as a means to increase surgical throughput and optimize resource utilization. However, this strategy can lead to significant challenges and negative outcomes for operating rooms (ORs), surgical teams, and patient care. The Strategy of Overbooking Surgical Cases Overbooking surgical cases involves scheduling more procedures than the OR can reasonably handle in a given timeframe. The rationale behind this approach is...

The Impact of High Turnover in Anesthesia Departments After Private Equity Takeovers

When private equity firms aim to streamline operations and increase profitability in medical facilities, their involvement often leads to high staff turnover rates. For instance, changes in employment terms, compensation structures, and operational expectations can lead to dissatisfaction among providers who seek more stable and predictable work environments. However, the implications can be far-reaching and can affect the hospital as a whole, the patients, and the community, especially when specialized departments, such as anesthesia, are impacted. Impact on Hospitals Anesthesia departments are crucial for a wide range of procedures, and instability can lead to scheduling issues and delays. Hospitals may...

Addressing the Knowledge Gap When Private Equity Meets Anesthesia Management

Private equity firms, while demonstrating a growing interest in the healthcare sector and acquiring numerous medical facilities and specialty departments, also pose potential risks. Some medical facilities may turn to private equity for fresh capital and innovative business strategies. However, their involvement, often driven by limited knowledge and understanding of the complexities of healthcare, can lead to challenges, particularly in specialty areas like anesthesia. As anesthesia departments require specific familiarity and experience to function smoothly, this lack of expertise can lead to inefficiencies, disturbances in patient care, and challenges within care teams. Specific Workflow Disruption Anesthesia departments operate with specific workflows...

The Sudden Effects of Private Equity in Healthcare Management

In recent years, private equity firms have shown increasing interest in acquiring hospitals and medical centers, significantly influencing the way these facilities operate. While the involvement of private equity firms often promises increased efficiency and profitability, the changes they introduce can have profound and quick implications for various stakeholders. These changes frequently lead to shifts in organizational structure, operational protocols, and financial arrangements, often resulting in uncertainty and disruption. The impact on anesthesia providers, in particular, can seem like they happen overnight. Anesthesiologists and CRNAs, for example, often face immediate changes in their employment status, compensation models, and practice autonomy. Furthermore, these...