Running a private anesthesia group means balancing high-quality patient care with the rising cost of doing business. But one financial step many practices overlook is updating charge rates every year. In anesthesia—where margins are already tight and payers are aggressive—this simple annual adjustment can make a major difference.
Here’s why it matters:
1. Your Costs Go Up Every Year
Anesthesia practices feel cost increases faster than most specialties:
- CRNA and anesthesiologist compensation
- Malpractice premiums
- Drugs and supplies
- Monitoring equipment and maintenance
- Billing and administrative overhead
If your charge rates stay flat while your expenses rise, your practice absorbs the difference—and profitability erodes.
2. Payer Contracts Often Tie Back to Charges
Even if you’re contracted on a fee schedule, many plans still reference:
- Percent-of-charge structures
- Conversion factor negotiations
- Out-of-network reimbursement tied to billed charges
If your charges don’t grow with the market, you lose leverage—especially during contract renewals.
3. Undercharging Is a Silent Margin Killer
Anesthesia is already undervalued by some payers. When practices hesitate to raise charges, they unintentionally:
- Lower their own negotiating power
- Reduce out-of-network collections
- Minimize the “starting point” for appeals and adjustments
Small, strategic annual increases prevent revenue leakage.
4. Gradual Annual Changes Beat Big, Reactive Fixes
When practices skip updates for years, they eventually need a big increase—which can draw payer attention or create patient concerns.
Incremental yearly adjustments are:
- Smoother for revenue cycle
- Less noticeable to patients
- Easier to justify to payers
- More aligned with inflation and cost trends
Consistency wins.
Bottom Line
For private anesthesia groups, updating charge rates annually is a simple but powerful financial strategy. It protects revenue, strengthens payer negotiations, supports compliance, and keeps your practice aligned with rising costs.
A strong charge structure = a more sustainable anesthesia practice.
Contact us at sales@fusionanesthesia.com for more information and guidance on increasing your charge rate master rates.