Olean General Hospital refuses to 'pay millions of dollars more than necessary' for local anesthesia provider — 5 insights

Olean (N.Y.) General Hospital's board of directors released a statement affirming the hospital's decision to drop Olean-based Southern Tier Anesthesiologists, the Olean Times Herald reports.

Here are five insights:

1. Although the contract had been awarded to Buffalo, N.Y.-based Great Lakes Anesthesiology in a "fair bidding process," OGH re-opened negotiations with Southern Tier Anesthesiologists in late August, the letter said.

2. Even after STA lowered its bid, the gap between the two providers' offers was significant, the letter said.

3. OGH said discussions are over, and it will stand by its original decision. Great Lakes Anesthesiology will provide the hospital's anesthesia services beginning Jan. 1, 2019.

4. The board said the decision "is consistent with our mission and values and is in the overall best interest of our community."

5. The board's letter was released two days after the Olean Common Council approved a measure asking OGH and its parent, Buffalo-based Kaleida Health, to revisit contract negotiations with STA.

"We regret that these negotiations were not successful, and we are grateful to STA for their service to OGH, but it is simply not feasible for OGH to pay millions of dollars more than necessary over the life of the STA contract," the letter said. "Thank you for your understanding and continued support of OGH in these very challenging times for health care."

More articles on anesthesia:
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Council asks Olean General Hospital to reconsider switching anesthesia providers — 5 insights

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