Cohesive Group The Business of Healthcare

The High Cost of So-Called National Anesthesia and Radiology Groups

October 10, 2011

A few days ago I heard another of what is becoming a familiar story.

A hospital had dumped its longstanding hospital-based contractor (this time an anesthesia group) in favor of a “national practice.”  The national practice presented well – lots of guys in nice suits and far better graphics on their presentation materials than the old group.  And the old group “cost” too much.

Of so the hospital thought.

But the suits were empty.  The national group wasn’t a group at all.  It was a staffing, or rather, a billing, service.  And it couldn’t or wouldn’t recruit to full strength.  The hospital’s business faltered, resulting in the loss of millions.

Flash forward to a few days ago.  Less than a year after it arrived, the national group has been given notice of termination.  The hospital’s CFO, who championed the cost savings, has been fired.

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