BC Advantage - 2011 Issue 5
Two Cost Share Models: Calculating an Anesthesia Cost Share Often Lies in Identifying the correct variables
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Article Overview
This article explains two anesthesia cost share models and the operational factors used to estimate facility-related inefficiency. It is aimed at anesthesia practice leaders, facility administrators, and coding or revenue cycle professionals who need a high-level understanding of how cost share calculations may be structured around staffing, turnover, and room utilization benchmarks. The discussion stays focused on model structure, measurement concepts, and the types of variables that can drive a negotiated arrangement.
Why This Topic Matters
Understanding the difference between cost share approaches can help organizations evaluate whether an arrangement is tied to operational inefficiency rather than compensation alone. That distinction is important for anesthesia practices and facilities that need to align expectations, responsibilities, and measurement methods.
Article Sections
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Introduction to cost share terminology
Introduces the article’s framing of cost share arrangements and the general reason they arise in anesthesia settings.
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Key variables used in the models
Summarizes the operational variables the article uses to structure the comparison between the two models.
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Two models, different variable solutions
Describes the overall comparison between the two approaches and how each focuses on a different source of inefficiency.
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Model one: Cost share is the cost of OR inefficiency as determined by benchmarks and targets
Presents the first model and the broad efficiency concepts used to estimate facility-related cost share.
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Model two: Cost share is the facility caused cost of unproductive CRNA time
Presents the second model and the broader minute-based and unit-based approach used to estimate unproductive time.
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The choice is yours
Offers a general discussion of selecting the most appropriate variable for a cost share arrangement and the value of focusing on operational causes.
What You Will Learn
- How anesthesia cost share arrangements are framed in operational terms
- What broad variables are used to compare two cost share models
- How efficiency and unproductive time are approached at a high level
- Why facility workflow and room utilization matter in these models
- How the article distinguishes model design from compensation-focused framing
Who Should Read This
- Anesthesia practice administrators
- Facility administrators
- Anesthesiologists
- Certified registered nurse anesthetists
- Healthcare finance professionals
- Revenue cycle and medical practice management professionals
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