Anesthesia Alert
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The total of anesthesia units comes to 26,850 (7,350 + 12,000 +
7,500). Now assume that the payer mix is 70% Medicare and 30%
commercial. (We'll use a conservative estimate of $40 per unit for
commercial insurers.)
Case mix Units per case Total units
colonoscopies/EGDs
(35%, 1,050 cases)
7 (5 base + 2 time) 7,350
general surgery
(40%, 1,200 cases)
10 (5 base + 5 time) 12,000
orthopedics
(25%, 750 cases)
10 (5 base + 5 time) 7,500
Insurance Units x rate Total revenue
Medicare 70%
(0.7 x 26,850)
18,795 x $22 $413,490
Commercial 30%
(0.3 x 26,850)
8,055 x $40 $322,200
• UNITS Ever consider how much your
cases are worth to an anesthesia provider?
NEGOTIATIONS
What's a Contract Worth?
When negotiating a contract with your
anesthesia providers, it helps to know
how much revenue they'll earn at your
facility. Let's say your surgical center
does 3,000 cases per year in the following
mix. To simplify, I'll leave out revenue for
peripheral nerve blocks, use only a gener-
ic value for units and leave Medicaid out.
The anesthesia revenue generated by this surgical center would
be $735,690 and would probably require 2 to 3 full-time
providers. — Mike MacKinnon, MSN, FNP-C, CRNA
