Michigan health system hires new anesthesia group — 4 insights

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Southfield, Mich.-based Beaumont Health is switching to a new anesthesia provider after mediation efforts with the health system's former anesthesia group failed, Crain's Detroit Business reports.

What you should know:

1. Beaumont entered into a contract with Irving, Texas-based NorthStar Anesthesia. NorthStar will replace the health system's long-term anesthesia service partner, Anesthesiology Associates of Ann Arbor (Mich.).

2. NorthStar will hire Beaumont's 140 CRNAs and then provide 28 anesthesiologists to staff four of Beaumont's hospitals. The health system will not hire A4's 28 anesthesiologists to continue to serve the hospital, and said those anesthesiologists will serve other facilities A4 is affiliated with. By contracting out CRNAs, Beaumont expects to save hundreds of thousands of dollars, an anonymous source affiliated with the health system said. 

3. Beaumont is expected to announce similar agreements for its other hospitals in the coming months. 

4. A4 and Beaumont split over reimbursement issues. A4 said it would terminate its contract with the health system in March. A4 expects its contract will end June 10, but NorthStar will not begin providing services until Aug. 20. 

Read the whole story here.

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